Egypt: PMI rises slightly, remains in contractionary territory in January
February 3, 2021
Egypt’s Purchasing Managers’ Index (PMI)—which measures business activity in the non-oil private sector—rose slightly to 48.7 in January from 48.2 in December. The figure marked the second sub-50 print in consecutive months, with readings below 50 indicating an overall decrease in operating conditions compared to the previous month.
The rise in the PMI reflected softer falls in output and new orders, as domestic markets improved somewhat in the month. Furthermore, firms cut employment levels at the softest rate in 15 months. On the price front, input costs rose at the quickest pace in three months, with higher output prices being charged as a result. Finally, sentiment among firms improved to a six-month high in January, with nearly 40% of businesses expecting output to expand over the coming year.
Author: Stephen Vogado, Economist