Egypt: PMI improves marginally in May
June 3, 2015
The HSBC Egypt Purchasing Managers’ Index (PMI) inched up from 49.8 in April to 49.9 in May. The PMI is just below the 50-threshold that separates expansion from contraction in the non-oil producing private sector. However, May’s result is the highest this year and suggests that operating conditions in the manufacturing sector may be on the mend after a disappointing past few months.
May’s result was driven by marginal increases in output and purchasing activity, as well as the first rise in employment in six months. However, new orders stagnated in negative territory in May. New export business declined the most in three months amid instability in key markets across the Middle East region.
HSBC analysts noted that, “latest PMI data for Egypt highlighted a further worsening in business conditions during May, led by a stagnation in new orders. However, the rate of contraction was negligible, with expansions in output and employment suggesting that the headline index could signal improvement in the near future.”
Author: Carl Kelly, Economist