Egypt: PMI moderates in September
October 5, 2015
The Emirates NDB Egypt Purchasing Managers’ Index (PMI) inched down from 51.2 in August to 50.2 in September, but held above the 50-threshold that separates expansion from contraction in the non-oil producing private sector. August’s result had marked the highest reading since December of last year and September marks the first time this year that the index has been above the 50-threshold for two straight months.
Both output and new orders rose for the second consecutive time, although at a slower pace than in August. New orders were kept in check by political and economic instability at home and abroad. Meanwhile, purchasing activity stagnated in September and employment fell for a fourth straight month.
Emirates NBD analysts noted that, “given ongoing weakness in the export sector, it is encouraging that the overall PMI index continued to show an expansion in private sector activity. While the pace of growth is moderate, the survey nevertheless points to a slight improvement in domestic demand in the first quarter of Egypt’s fiscal year FY2015/16. The challenge will be to maintain this momentum through the remainder of the year.”
Author: Carl Kelly, Economist