Employment in Egypt increases for the first time in nine months

Egyptian businesses increased headcounts for the first time since last October, while cuts in purchasing softened.

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Egyptian non-oil business conditions deteriorated for the fifth consecutive month in July, although the decline was less severe than in June, with firms reporting softer contractions in both activity and new orders.

Input price pressures accelerated in July but remained much lower than the long-run trend, with firms highlighting increased prices for a few key items. Although output charges rose for the third month in a row, the rate of increase remained only marginal.

The headline seasonally adjusted S&P Global Egypt Purchasing Managers’ Index (PMI) is a composite gauge designed to give a single-figure snapshot of operating conditions in the non-oil private sector economy. It is calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases.

The headline PMI increased to 49.5 in July, from 48.8 in June, remaining below the 50.0 no-change threshold for the fifth consecutive month. Nevertheless, the index was at its joint-highest level during this period, indicating only a marginal decline in the health of the non-oil private sector economy.