Egypt: PMI rises in May
June 5, 2016
The Emirates NDB Egypt Purchasing Managers’ Index (PMI) rose from April’s 46.9 to 47.6 in May. Despite the increase, the PMI index remains below the 50-threshold that separates contraction from expansion in the non-oil producing private sector, where it has been since October 2015.
May’s improvement reflects that output, new orders and employment recorded softer contractions than in April. Nevertheless, all three categories continued in decline. Moreover, according to the survey report, March’s notable devaluation of the pound led to economic woes in May and was behind a significant increase in input prices and output charges.
Jean-Paul Pigat, Senior Economist at Emirates NBD, commented that, “it’s definitely encouraging to see signs that the downturn has started to ease, as tentative as those indications may be. But the survey also continues to point to fundamentally weak demand conditions across the economy, which in light of the ongoing FX shortage, is likely to persist as we head into the start of FY2016/17.”