Back to the complete issue
Thursday, 5 January 2017

PMI falls again in December, caps off worst quarter on record

Spell not yet broken: PMI still signals decline. Egypt’s non-oil private sector continued to decline in December, as per the Emirates NBD Egypt PMI compiled by Markit, which registered a reading of 42.8. The downturn eased slightly from November’s, but remains substantial. “Output, new orders and input buying all dropped considerably, continuing trends observed throughout the latter part of 2016 … sharp inflation was a key factor behind firms’ difficulties. Purchase costs rose at a near-record pace, leading to a lack of raw materials at some companies. This restricted output … had a damaging effect on client demand.” Seeing the only silver lining in the report, Jean-Paul Pigat, Senior Economist at Emirates NBD, said: “New export orders decreased at the slowest pace since September 2015. Although the process will not be immediate, a weaker Egyptian pound following November’s devaluation will eventually help boost export growth,” an important step, given weak domestic demand. December’s PMI reading rounded off the worst quarter on average since PMI data collection began in 2011. Tap here to read the full report (pdf).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.