Egypt: PMI moderates in October but recovery appears underway
November 4, 2014
The HSBC Egypt Purchasing Managers’ Index (PMI) decreased slightly from 52.4 in September to 51.0 in October. September’s result had represented the highest level in 10 months. However, the PMI is still above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
October’s result reflects ongoing expansion of output and new orders, although at weaker rates than in the previous month. Business indicated that new orders increased amid improving security conditions. New export growth rose for the third consecutive month. Employment rose again in October, after having increased in September for the first time since April 2012. HSBC analysts added that, “the pace of growth is still muted, but the PMI score points to the Egyptian economy starting to find its feet. As confidence improves, we remain optimistic that the economy will continue to expand into the year-end, albeit off a low base.”
Author: Carl Kelly, Economist