Egypt: PMI slips back into negative territory in December
December 4, 2017
The Emirates NBD Egypt Purchasing Managers’ Index (PMI) fell from 50.7 in November to 48.3 in December, signaling a worsening in operating conditions after briefly moving into positive territory for the first time in over two years in the prior month.
December’s decrease was driven by contractions in output and new orders both at home and abroad. On the positive side, despite subdued activity, the rate of job shedding reached a 28-month low, likely thanks to strong business confidence regarding future growth prospects. Firms’ sentiment was underpinned by increased capital expenditure and expected future economic stability. On the price side, input price inflation eased to a near two-year low, while the rate of output price inflation also dipped.
Author: Oliver Reynolds, Economist