Cityscape in Egypt

Egypt PMI August 2021

Egypt: PMI increases in August; conditions continue to worsen

The IHS Markit Purchasing Managers’ Index (PMI)—which measures business activity in the non-oil private sector—rose to 49.8 in August from 49.1 in July. Consequently, the index remained below the 50-threshold for the ninth consecutive month, signaling a continued, albeit milder, overall deterioration of operating business conditions compare to the prior month.

August’s upturn was largely due to a bounce-back in activity and higher tourist arrivals as travel resumed, which led to an expansion of output and new orders, although growth was marginal. Consequently, firms increased staff levels and employment rose for a second consecutive month. On the price front, input prices increased at the sharpest rate in two years due to high commodity prices, higher prices for transport and custom fees, as well as supply shortages. As such, firms passed on a large proportion of the higher input costs, resulting in output charge inflation rising at the fastest pace in three years. Lastly, firms remained optimistic in August on the back of a firming second phase of the economic recovery and expecting output to expand in the coming 12-month period as both demand and capacity improve.

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