Egypt’s non-oil private sector activity continued to shrink in May to reach 49.2 points, down from 50.1 points in April. Nonetheless, the Purchasing Managers’ Index (PMI) score for May remained well above the long-term average, according to the latest Emirates NBD Egypt Purchasing Managers’ Index survey, published on Tuesday.
However, according to the survey, there was positive news in that purchasing activity recorded its eighth consecutive expansionary month, with 16.9% of respondents noting an increase in buying levels, owing in part to business expansion and product development.
The forecasted improvement is backed by the fact that most businesses expect conditions to be better or the same in 12 months’ time.
This is an indicator of how much the Egyptian economy has already improved rather than an expectation that there would be a renewed deterioration, the report stated.
Moreover, the employment index showed signs of improvement as well, with the May score of 49.0 points indicating the slowest pace of job-shedding since February.
However, input price inflation fell to a three-year low in May, at 59 points, suggesting that firms may soon be able to afford to maintain their staffing levels should the current trends continue.
