Non-oil private sector companies signaled a deterioration in overall business conditions for the nineteenth consecutive month in April, the Emirates NBD PMI reading showed. The PMI reading recorded 47.4 in April from 45.9 in March, a nine-month high, signalling a slower rate of deterioration. Output and new orders fell, albeit at slower rates, and the declines resulted in firms decreasing their payroll numbers and purchase activities.

The high note in the report came from export orders, which rose for the first time, ending a 21-month contraction streak. “The slower pace of deterioration in the headline Egypt PMI is an encouraging start to Q2 as it follows on from a gradually improving trend already seen through Q1. It reinforces the perception that after bottoming-out in Q4 2016, the economic situation in Egypt is beginning to stabilize. As well as being the overall gauge posting its strongest overall reading in nine months, particular comfort can be taken from the fact that the new export orders index grew for the first time in nearly two years which is likely to reflect the positive impact of a weaker exchange rate,” Tim Fox, Head of Research and Chief Economist at Emirates NBD, commented.