Cityscape in Egypt

Egypt PMI September 2020

Egypt: PMI in September in expansionary territory for first time since July 2019

Egypt’s Purchasing Managers’ Index (PMI)—which measures business activity in the non-oil private sector—rose to 50.4 in September from 49.4 in August. The figure marked the first expansionary reading in 14 months, with readings above 50 indicating an overall increase in operating conditions compared to the previous month.

The uptick in the PMI was predominantly driven by a third successive rise in new business, with the rate of sales growth accelerating at the fastest pace in over five years as consumer demand notably improved. Furthermore, the decline in employment also softened in September, although this nonetheless represented the 11th straight month of weakening employment figures.

On the price front, input costs continued to increase in September but at a softer pace, in part due to a stronger Egyptian pound. Consequently, output prices also rose.

Regarding this month’s print, David Owen, economist at IHS Markit, commented:

“The latest Egypt PMI data offered more optimism for businesses, as the September PMI indicated an improvement in economic conditions for the first time in 14 months. […] This suggests the non-oil economy is seeing a modest turnaround after the devastating impact of the COVID-19 pandemic. Both the Output and New Orders series have been in expansion territory for three months, pointing to a more upbeat picture for the third quarter of 2020.”

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