CAIRO: Egypt’s non-oil private-sector activity contracted for the seventh consecutive month in March, though it saw its highest reading since August, a survey showed on Sunday. The Emirates NBD Egypt Purchasing Managers’ Index (PMI) for the non-oil private sector strengthened to 49.9 in March from 48.2 in February, just below the 50 mark that separates growth from contraction and above 2018’s average of 49.5. The March reading was a considerable improvement from February’s 17-month low. It signalled “a broad stabilisation of the health of the Egyptian non-oil private-sector economy,” the PMI report said.
A sub-index for output improved markedly, also rising to its highest since August at 49.9 in March from 46.7 in February, but remaining in contraction territory. “New orders turned positive in March for the first time since August last year, which in turn saw output contract only marginally,” said Daniel Richards, MENA economist at Emirates NBD. “The boost in orders appears to have been domestically driven, as export orders remained contractionary, albeit at a slightly slower pace than the multi-year low recorded in February.”
Overall input prices hit a record low at 50.8 in March from 53.6 the prior month, “particularly due to reduced price pressures on input purchases,” the report said. Some companies expressed concern that a stagnant economy would weaken activity in the next year, but maintained an optimistic outlook overall, pegged to a rise in new orders and improving tourism, the Purchasing Managers’ Index report said. — Reuters
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