Cityscape in Egypt

Egypt PMI March 2021

Egypt: PMI falls to nine-month low in March

Egypt’s Purchasing Managers’ Index (PMI)—which measures business activity in the non-oil private sector—fell to 48.0 in March from 49.3 in February. The figure marked the fourth sub-50 print in consecutive months, with readings below 50 indicating an overall worsening of operating conditions compared to the previous month.

The drop in the PMI was driven by the sharpest fall in output since June 2020 amid falling demand. Moreover, export sales fell for the first time in three months, while the run of monthly job losses extended to almost a year-and-a-half due to softer capacity pressures.

On the price front, input price inflation softened in March due to weaker input demand, despite a continued rise in purchasing costs. Likewise, output prices rose marginally in the month. Finally, sentiment improved markedly in March on the back of the government’s vaccination drive, fueling hopes of a faster-than-expected return to normality.

Regarding the outlook, David Owen, economist at IHS Markit, commented:

“The outlook for future business activity was more positive, as businesses predicted that economic conditions will start to pick up soon as vaccines feed through to a greater reopening of the economy. The expanding of the vaccine programme to more demographics played a key part in boosting expectations. Hopefully this is a sign of improving demand in the near term and a recovery in output in the second half of the year.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest