Egypt Non-Oil Economy Stable

The downturn in the overall health of the Egypt’s non-oil private sector eased in July, with the latest deterioration in business conditions marking the weakest in a year, according to new survey, ameinfo reported. The Emirates National Bank of Dubai Egypt purchasing managers index reveals that new orders stabilized during July, ending a 21-month sequence of decline. Output declined at the slowest pace in 12 months, thereby leading to only a marginal fall in input buying. In response to lower output requirements, firms reduced their staffing levels during the month. New export orders rose for the fourth consecutive month, but only marginally during July. Meanwhile, firms saw a sharp pick-up in input cost inflation. The headline PMI rose to 48.6 at the start of the third quarter from 47.2 in June. A 50.0 mark on the index separates growth from contraction. The latest deterioration was the second-weakest since the contraction in business conditions started in October 2015 and was modest overall. Moreover, the headline PMI was slightly above the long-run average.