Egypt: PMI falls into contraction territory in January
February 3, 2015
The HSBC Egypt Purchasing Managers’ Index (PMI) fell from 51.4 in December to 49.3 in January. The result was the weakest in six months and the PMI is now below the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
January’s result reflects declines in both output and new orders. Low demand and sluggish market activity weighed on these categories. Moreover, new export orders fell for the second time in the past three months. Following on weaker output and new business, employment dropped again in January. HSBC analysts noted that, “the numbers show that Egypt's recovery remains weak and vulnerable to downside risk. While we continue to except an upward trajectory for the economy, the gains will come off a low base.”
Author: Carl Kelly, Economist