Egypt’s non-oil private sector renews downturn in July: survey
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CAIRO: Business condition in Egypt’s non-oil private sector deteriorated in July, as output, orders and employment posted modest shrinks, Emirates NBD announced in a survey released Tuesday.

The Emirates NBD Egypt Purchasing Managers’ Index (PMI) slipped to 49.2 in July, down from 50.2 in June, according to the survey.

Readings above 50.0 reflect an improvement in business conditions, while a breach below this level marks a deteriorating business. The June rebound was the first time since December.

“The drop in July’s survey came in below expectations, and hence raises the possibility that Egypt’s macroeconomic recovery may have stalled at the start of FY2015/2016,” said Jean-Paul Pigat, Senior Economist at Emirates NBD.

He added: “Assuming the two biggest factors that are undermining private sector business activity at the moment – security risks and FX liquidity shortages – improve in the coming months, we would be optimistic that growth momentum can accelerate in H2.”

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