Egypt’s non-oil economy stabilizes as output and new orders rise

LONDON: Egypt’s non-oil economy improved in June as both output and new orders rose for the first time in seven months, according to IHS Markit.
IHS Markit Egypt Purchasing Managers’ Index (PMI) climbed to 49.9 last month, just below the 50 mark that indicates expansion, from 48.6 in May. The output and new orders sub-indexes both rose above 50.
However, employment contracted, albeit at a slower pace than previous months, HIS Markit said in a statement. Some businesses reported not replacing employees that had left voluntarily, while others hired new workers, but not in big enough numbers for a net gain.
Survey respondents reported concern over inflation as input prices rose at the fastest pace since August 2019, driven mainly by raw material prices.
“A second successive rise brought the Egypt PMI almost to the 50.0 growth mark in June, posting 49.9 to record its highest reading in seven months,” said David Owen, an economist at IHS Markit. “While output and new orders moved into expansion territory, it was the employment Index that held back the headline figure as job numbers continued to fall overall.”
“However, with demand creeping up and COVID-19 restrictions easing, it might not be long before hiring growth resumes,” he said.

Egypt’s non-oil economy stabilizes as output and new orders rise