Where is the floor? Business activity in Egypt contracted for the eleventh month straight in August, recording 47.0 from 48.9 in July, according to the Emirates NBD Egypt’s PMI, compiled by IHS Markit. The contraction “gathered pace” with sharp falls in output and new orders and survey-record pace in job losses. Purchase prices also increased to their highest levels in the series’ history, constricting the supply of raw materials and affecting liquidity. Both input buying and pre-production inventory also decreased at fast rate. “The August PMI figures underscore the urgency to initiate a wide-ranging economic reform program. Most importantly, the survey data highlights the ongoing need to move to a more flexible exchange rate system in order to achieve a market-clearing rate for the EGP,” Jean-Paul Pigat, senior economist at Emirates NBD, commented.