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· IHS Markit Egypt Purchasing Managers’ Index (PMI) scaled to 44.6 in June up from 40.7 in May and 29.7 in April, marking the highest in four months
· This signals that the downturn being experienced due to pandemic is slowing down
· However, PMI any figure below 50 signify the contraction of the economy
IHS Markit Egypt Purchasing Managers’ Index (PMI) scaled to 44.6 in June up from 40.7 in May and 29.7 in April, marking the highest in four months. This signals that the downturn being experienced due to pandemic is slowing down. However, PMI any figure below 50 signify the contraction of the economy.
The Egyptian non-oil private sector faced a further deterioration in business conditions in June. There were positive signs in the horizon as rates of decline in both activity and new business slowed considerably from May.
Firms were still actively cutting employment in June. The job shedding is poised to reach a near four-year high. Firms are refraining from hiring people in order to reduce staffing costs.
Supply backlogs at Egyptian companies rose for the second consecutive month, and at a record pace, signaling that firms were increasingly constrained on business capacity. Meanwhile, firms reported a softer reduction in purchasing activity in June, as the decline in new business also slowed.
Employment numbers still fell at an accelerated rate in June. Higher demand at some companies, increased backlogs and sentiment rising to a six-month high are indicative of a possible recovery of the economy. The sectors which have shown buoyancy are medical equipment and other raw materials. They saw a sharp uptick in June.
