Egypt/ PMI September reading
Non-oil private sector registered its first expansion since July 2019 and highest reading in 17 months. The non-oil private sector in Egypt returned to growth for the first time in 14 months in September, registering 50.4 compared to 49.4 in August. The turnaround in economic activity in September was driven by: (1) the third consecutive month of increase in new orders, (2) a rise in output, registering its highest reading since July 2019, and (3) continued improvement in the export index. The reading is signaling that the pick-up in domestic demand is gaining a momentum. This comes in light of pent-up consumption triggered by relaxed COVID-19 related measures. Also, easing concerns over the virus’s possible second wave contributed as well. Thanks to the reopening process, normalization of business activity accompanied by the rebound in external demand helped the tourism and hospitality sector start its long journey to recovery.
Mona Bedeir
Senior Economist
Tel.: +202 3300 5722