Egypt: PMI in expansionary territory in June for first time in 6 months
July 5, 2015
The Emirates NDB Egypt Purchasing Managers’ Index (PMI) inched up from 49.9 in May to 50.2 in June, rising above the 50-threshold that separates expansion from contraction in the non-oil producing private sector for the first time since December 2014. The result points to a continued improvement in the manufacturing sector following a series of disappointing readings in the past few months.
Output, new orders and new export business drove the positive result. That said, the improvement in the overall index was dampened by a reduction in payrolls and a drop in stock purchases.
Emirates NBD analysts noted that, “June’s PMI reading fits well with our view that the Egyptian economy should gradually pick up momentum heading into the second half of 2015. However, the survey also shows business activity and job creation remaining relatively tepid.”
Author: Carl Kelly, Economist