CAIRO: Egypt’s non-oil private sector worsened once more in business conditions for a fifth straight month at May-end, due to stagnation in new orders, HSBC announced in a survey released Wednesday.
The HSBC Egypt Purchasing Managers Index (PMI) hit 49.9 points in May, slightly up from 49.8 in April, however it reflected a fractional deterioration in non-oil private sector operating conditions.
HSBC said that the latest reading of the headline index was “the highest seen” over the first five months of 2015. Yet it remains below the 50.0 no-change mark.
Readings above 50.0 reflect an improvement in business conditions, while a breach below this level marks a deteriorating business. The sector recorded a 17-month low of 46.8 at February-end
Commenting on the survey, Philip Leake, an economist at Markit said, “Latest PMI data for Egypt highlighted a further worsening in business conditions during May, led by stagnation in new orders.”
Leake added that the rate of contraction was “negligible,” thanks to expansions in output and employment.
Accordingly, the economist forecasted that the headline index is projected to “signal improvement in the near future.”