Egypt's PMI exceeds 50 during September

  • 06 October 2020 / News / 128 / Khaled Zaki

Egypt's PMI exceeds 50 during September

CAIRO – 5 August 2020: IHS Markit Egypt Purchasing Managers’ IndexTM (PMI) posted 50.4 in September, up from 49.4 in August.

 This result is the first above-50.0 reading since July 2019.

 HIS Markit noted that the Egyptian non-oil private sector registered its first economic upturn for 14 months in September.

 "The latest Egypt PMI data offered more optimism for businesses, as the September PMI indicated an improvement in economic conditions for the first time in 14 months. While only marginally in positive territory at 50.4, the PMI was also strongly above its trend level of 48.1,” Economist at IHS Markit David Owen said.

 "This suggests the non-oil economy is seeing a modest turnaround after the devastating impact of the COVID-19 pandemic. Both the Output and New Orders series have been in expansion territory for three months, pointing to a more upbeat picture for the third quarter of 2020,” Owen added.

 He stated that the Employment Index also rose to its highest in ten months, and indicated just a slight fall in workforces. While jobs are lagging behind the trend for activity, consistent increases in backlogs and mentions of hiring at some firms signal a stronger outlook for employment in the last quarter of the year.

source: egypttoday

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