PMI rises for the first time in 25 months
Non-oil private sector returns to growth: November’s PMI reading recorded a rise for the first time in 25 months, registering 50.7, up from October’s reading of 48.4. “Renewed growth of output, new orders and stocks of purchases all contributed to the latest improvement in business conditions. Furthermore, foreign demand for Egyptian-produced goods and services reached a record high. On the price front, rates of both input cost and output price inflation softened, falling below their respective long-run averages.” Anecdotal evidence shows the improvement in new export orders coming from an uptick in demand from neighbouring countries. However, the report also showed that job shedding continued, albeit at a marginally slower pace than that recorded in the preceding survey period. Emirates NBD MENA Economist Daniel Richards says “strong sentiment towards future prospects chimes with our view that the Egyptian economy will continue to strengthen over the coming quarters.” Sentiment towards future growth reached a 27-month high in November.