Business conditions stabilize in April as PMI reading registers 50.1
Business conditions in Egypt’s non-oil private sector stabilized in April, according to the Emirates NBD PMI reading (pdf) compiled by Markit. The gauge came in at 50.1 — just above the neutral 50.0 threshold — up from 49.2 in March, reflecting stabilizing output and growth in new orders. New export orders also rose for the fourth month. Companies’ input buying grew at its fastest rate since January, despite the growth being modest, the report noted.
April’s reading indicates “that the non-oil private sector is finally starting to contribute to the positive growth story underway in the country. We anticipate that the PMI will be more consistently positive over the coming quarters, as ongoing economic reforms and loosening monetary policy encourage greater private sector activity,” commented Daniel Richards, MENA Economist at Emirates NBD. The report also noted that companies were increasingly optimistic towards the 12-month outlook for output in April, after the PMI dipped in March, and expect an improvement in demand conditions.