Egypt PMI shows dip in private sector output

Output across Egypt’s private sector declined for the fifth consecutive month in February, with the Emirates NBD Purchasing Managers’ Index (PMI) reading coming in at 48.1. The PMI for January stood at 48.

The February’s level is above the 26-month low of 45.0 – registered in November – suggesting a slower pace of contraction.

A PMI over 50 indicates an increase, while below 50 shows contraction.

The output index rose slightly to 47.4, from 46.1 in January. The largest improvement came from new export orders, which jumped from 40.2 in January to 47.5 last month.

“In the near term we do not expect the export sector to provide a significant boost to the broader macro outlook given issues surrounding the downturn in the tourism industry, weaker demand in the GCC, slowing global trade, and the ongoing appreciation of the Egyptian pound (in REER terms),” Jean-Paul Pigat, senior economist at Emirates NBD, said.

The rate of inflation fell to a five-month low, with the input price index dropping to 61.3 from 63.2 in January. 

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com