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Monday, 13 August 2018

Headline PMI reaches eight-month high in July at 50.3

Headline PMI reaches eight-month high in July at 50.3: Business conditions in Egypt’s non-oil private sector improved last month, with the headline Emirates NBD PMI compiled by Markit (pdf) rising above the 50.0 mark that separates contraction from growth. The gauge rose to an eight-month high of 50.3 in July from 49.4 in June, thanks to a “greater volume of new business amid stronger demand from both domestic and foreign sources,” according to the report, which adds that “improvements in inbound tourism supported the upturn in new domestic orders, while a new global economic environment underpinned the expansion in new exports.”

Signs point to private sector recovery: Despite existing challenges, the outlook for the the current fiscal year remains positive, with expectations seeing GDP growth rising, said the report. In July, raw material shortages and higher costs — following the increase in fuel and power prices — weighed down business activity. However, indicators such as liquidity, output, staffing levels, and purchasing activity fell at a much “softer pace than in the previous month,” pointing to the start of private sector recovery, “supported by gradual monetary policy normalization, improved political stability, and a rebound in the tourism sector.”

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