Egypt’s non-oil private activity out of recession, grows after 32-week


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Egypt’s non-oil private activity out of recession, grows after 32-week

On Sunday, the 5th of May 2019, a survey conducted by a private firm had indicated that the Egypt’s non-oil private sector activity had expanded for the first time after eight straight months of contraction and posted its highest reading since August 2015.

According to the Emirates NBD Egypt Purchasing Managers’ Index data released on Sunday (May 5th), the non-oil private sector activity had surged to 50.8 in April from a previous figure of 49.9 a month earlier, breaching a critical 50.0-level that separates growth from recession for the first times since August last year.

Besides, the PMI (Purchasing Managers’ Index) report had also added that the April reading was the highest in over three and a half years and, since then, there had only been six readings in an affirmative territory including April.

Apart from that, a sub-index for private-sector output had also returned in to expansion, posting a figure of 51.1 in April from 49.9 a month earlier. Adding that the Egyptian economy had been in a broad-based rally since the beginning of 2019, a MENA economist at Emirates NBD, Daniel Richards said, “The improvement from the first quarter – the PMI index averaged just 48.9 over January to March – was broad-based, with most of the index’s subcomponents returning positive 50-plus readings”.