Egypt Non-oil Private Sector Activity Rebounds In June

(RTTNews) - Egypt's non-oil private sector activity recovered in June on increased new orders and output, the results of a survey by Markit Economics and HSBC Bank showed Thursday.

The HSBC purchasing managers' index, or PMI, for the non-oil private sector rose to 51.5 in June from 48.7 in May, marking the first expansion in activity in three months.

New orders strengthened and output increased at a solid rate in June.

However, employment levels continued to decline for the twenty sixth successive month in June, though at the slowest pace in the current stretch.

Input cost inflation and staff cost inflation quickened in June while selling prices were reduced by non-oil private sector firms to attract new customers.

Purchasing activity rose at its fastest pace in survey history on account of increased demand within the economy.

Simon Williams, Chief Economist for the Middle East at HSBC said, "It would be dangerous to read too much into a single month's data, but the June readings provide the first concrete signs that political stabilisation may finally be opening the way for an improvement in economic performance. The positive readings for output, new orders and purchases all point to a pick up in demand and in sentiment. The gains in salaries also suggest that the labour market may have finally started to turn."