Business conditions worsened for the tenth straight month in July, but the death-spiral is flattening out, according to the Emirates NBD Egypt PMI compiled by Markit. With a reading of 48.9 in July, up from 47.5 in June, the PMI is showing the slowest extent of contraction since October 2015 as it edges closer to the “no change” mark of 50. Emirates NBD senior economist Jean-Paul Pigat says “some consolation can be found in July’s report as the pace of contraction is starting to ease. Addressing the FX liquidity shortage will be key to seeing a further stabilization in the PMI in H2.” While there were slower declines in output and new orders during July, foreign new business fell at the quickest pace in three months and the non-oil business sector continued to shed jobs for the fourteenth consecutive month. One improvement to look out for: Some panelists commented on an improvement in underlying demand, despite reports of liquidity shortages.