Cityscape in Egypt

Egypt PMI May 2021

Egypt: PMI rises in May; remains in contractionary territory for sixth month running

Egypt’s Purchasing Managers’ Index (PMI)—which measures business activity in the non-oil private sector—rose to 48.6 in May from 47.7 in April, hitting a three-month high in the process. Nevertheless, the reading marked the sixth sub-50 print in consecutive months, with readings below 50 indicating an overall worsening of operating conditions compared to the previous month.

The rise in the PMI was driven by milder contractions in new orders and output, with both falling at the softest rates since February. Moreover, export sales rose solidly in the month, boosting the overall reading somewhat. On the price front, input price inflation continued to increase in May due to higher raw material costs. As a result, output prices rose in the month, albeit modestly. Finally, sentiment rose in May, with firms notably optimistic for the year ahead amid expectations of improving market conditions in the coming months.

Regarding the print, David Owen, economist at IHS Markit, commented:

“The Egypt PMI remained in contraction territory during May but did improve slightly from April, signalling a slight step towards stability in the non-oil economy. […] Business expectations data offered a glimpse of a positive future, as firms were at their most optimistic since early 2018 and expectant of a strong recovery in business conditions to follow soon.”

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 X Download Fullscreen