CAIRO: Business condition in Egypt’s non-oil private sector sustained in September, but at a weaker pace, due to slower expansions in both output and new business, Emirates NBD announced in a survey released Monday.
The Emirates NBD Egypt Purchasing Managers’ Index (PMI) registered 50.2 in September, down from August’s 51.2 eight-month high, according to the survey.
A further reduction in employment also contributed to the slowdown, it said. While input buying stagnated, data showed a first reduction in output charges since May, however currency depreciation against the U.S. dollar triggered another sharp rise in firms’ purchase prices, according to the survey.
“Given ongoing weakness in the export sector, it is encouraging that the overall PMI index continued to show an expansion in private sector activity,” said Jean-Paul Pigat, Senior Economist at Emirates NBD.
Pigat added that the survey shows a slight improvement in domestic demand in the first quarter of Egypt’s fiscal year FY2015/16, affirming that the maintaining this momentum through the remainder of the year will be the challenge.
Readings above 50.0 reflect an improvement in business conditions, while a breach below this level marks deteriorating business.
The figure comes in line with the average over Q3 as a whole (50.2). Yet the quarterly trend was the highest so far in 2015, as September is the third straight month in which growth has been observed since the beginning of the year.