Business activity shrinks for 17th month in Egypt

Business activity in Egypt shrank for the 17th consecutive month in February, a survey revealed yesterday.

The Emirates NBD Egypt Purchasing Managers’ Index (PMI) for the non-oil private sector showed that the Egyptian economy had retreated but at a slower rate than the previous month

With the Egyptian pound’s decline against the dollar pushing up purchasing prices, overall input costs rose in February even though labour costs fell.

“While the PMI data still indicated a contraction in Egypt’s private sector in February, the headline index rose to its highest level in six months,” said Tim Fox, head of research and Chief Economist at Emirates NBD.

“New export orders were only marginally lower than in January, signalling improving external demand, and the rate of decline in output was slower than last month.”

The PMI showed employment declined for the 21st consecutive month.

“Overall, there are signs of stabilisation in the non-oil private sector,” Fox said.