Egypt non-oil business activity slows for 10th straight month

Wednesday 03-08-2016 11:31 AM

A labourer works at a textile mill in Mahalla el-Kubra, about 110 km north of Cairo March 5, 2014. REUTERS/Mohamed Abd El Ghany

CAIRO, Aug 3 (Aswat Masriya) - Business activity in Egypt shrank in July, a survey showed on Wednesday, but at a lesser extent than the previous months.

The Emirates NBD Egypt Purchasing Managers Index (PMI) for the non-oil private sector recorded 48.9 points in July after 47.5 points in June, remaining below the 50-point mark that separates growth from contraction.

"Although the PMI is still pointing to weakness in Egypt's private sector, some consolation can be found in July's report as the pace of contraction is starting to ease," said Jean-Paul Pigat, Senior Economist at Emirates NBD.

"Addressing the FX liquidity shortage will be key to seeing a further stabilization in the PMI in the second half of the year."

The output sub-index continued to fall for a 10th month but at a slower rate, as it reached 48.8 points in July from 46 points in June.

New orders sub-index improved from the previous month as It reached 49.1 points in July from 46.1 points in June.

The export orders gauge also came to 45 points in July from 45.9 points in the previous month, recording the greatest contraction in three months, while the employment sub-index slipped to 45.7 points from 46.8 in June.

Egypt has been struggling to revive its economy since a popular uprising in 2011 and subsequent political upheaval that has driven away investors and tourists, depriving it of the foreign currency it needs to import raw materials.

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