Egypt: PMI inches up in February
March 3, 2016
The Emirates NDB Egypt Purchasing Managers’ Index (PMI) inched up from 48.0 in January to 48.1 in February. Despite the slight improvement, the PMI index remains below the 50-threshold that separates contraction from expansion in the non-oil producing private sector, where it has been for the last five months.
Output, new orders and exports continued to decline in February, although at a slower pace than in January. According to Emirates NBD analysts, anecdotal evidence suggests that security concerns are somewhat abating although they still weigh on external demand. Finally, ongoing weakness of the Egyptian pound continues to push input costs upward.
Emirates NBD analysts noted that “the PMI continues to reflect relatively subdued domestic demand conditions at the start of 2016, and is consistent with other official data we have on the real economy. Some encouragement can be taken from the new export orders component, which, despite remaining below the neutral 50-level, is nevertheless showing a slower pace of decline than in previous months”.
Author: Armando Ciccarelli, Head of Data Solutions