Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt greenlights new public free zones to drive export growth    PM Madbouly reviews progress of 1.5 Million Feddan Project    PM Madbouly reviews progress on electricity supply for New Delta agricultural development projects    Australia to recognise Palestinian state in September, New Zealand to decide    Trump orders homeless out of DC, deploys federal agents and prepares National Guard    Egypt, Côte d'Ivoire hold political talks, sign visa deal in Cairo    Egypt's TMG H1 profit jumps as sales hit record EGP 211bn    Egyptian pound stable vs. USD at Monday's close    Egypt, Germany FMs discuss Gaza escalation, humanitarian crisis    Egypt, Huawei explore healthcare digital transformation cooperation    Global matcha market to surpass $7bn by 2030: Nutrition expert    Egypt, Huawei discuss expanding AI, digital healthcare collaboration    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Oil rises on Wednesday    Egypt, Uganda strengthen water cooperation, address Nile governance    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Egypt, Malawi explore pharmaceutical cooperation, export opportunities    Egypt's Foreign Minister discusses Nile water security with Ugandan president    Egyptians vote in two-day Senate election with key list unopposed    Korean Cultural Centre in Cairo launches folk painting workshop    Egyptian Journalist Mohamed Abdel Galil Joins Golden Globe Voting Committee    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Foreign, housing ministers discuss Egypt's role in African development push    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt business activity grows at near-record pace in September: PMI
Published in Ahram Online on 07 - 10 - 2014

Business activity in Egypt expanded at a near-record pace in September, a survey showed on Tuesday, with a nascent economic recovery encouraging companies to hire for the first time in nearly 2-1/2 years.
Egypt's economy has been hit by more than three years of political and economic turmoil following the 2011 uprising that toppled Hosni Mubarak after 30 years in power.
The government is trying to strike a balance between cutting its deficit whilst reviving economic growth, which fell to 2.1 percent in the 2012/13 fiscal year and remains far slower thanthe pace needed to create enough jobs for a youthful population of 86 million.
Increased output and a sharp rise in new orders last month, however, appeared to suggest that confidence was beginning to return. At the same time, inflationary pressures stoked by a major reduction in government subsidies to the energy sector in July eased, with input and output prices rising more slowly.
The HSBC Egypt Purchasing Managers Index (PMI) for the non-oil private sector stood at 52.4 points in September, just a tick below the all-time high of 52.5 points hit last November. Readings above 50 indicate expansion while those below 50point to contraction.
"Growth in new orders and employment shows us market sentiment is improving. Many challenges still lie ahead, but overall the numbers are encouraging, and we continue to expect growth to pick up pace through 2015,” said Razan Nasser, senior economist at HSBC, commenting on the Egypt PMI.
Employment returns to growth
Egypt raised fuel prices by up to 78 percent in July in a long-awaited step to cut energy subsidies and ease the burden on the government's swelling budget deficit.
The cuts pushed up prices and hit business activity in July, but the effects appear to have been short-lived, with the pace of economic activity picking up in the two months since.
Egypt is targeting economic growth of up to 5.8 percent in the next three years, with the deficit staying at around 10 percent of gross domestic product (GDP).
The PMI survey of around 350 private-sector firms showed that output grew steadily in September, with the related subindex standing at 53.3 points. The subindex for new orders hit a nine-month high of 53.8, up from 52.8 in August.
The new export orders subindex stood at 52.4, just down from August's 52.5 points. Companies said much of that growth came from Europe and neighbouring Libya, despite the political challenges there.
In a significant shift, however, Egypt created more jobs in September with the subindex hitting 51 points, the fastest rate of employment since records began in 2011. Egypt's non-oil private sector firms have been shedding jobs
since May 2012, showing only a single month of stability at 50 points last July.
Input prices rose sharply, with the index at 61 points, squeezing company profits, though the pace of rise eased from
63.8 points and 67.8 in the previous two months as the government cut energy subsidies.
Higher input prices fed into higher selling prices in September. The output price subindex stood at 51.5 points, though the pace of increase again fell back from the previous month when it reached 51.7 points.
http://english.ahram.org.eg/News/112514.aspx


Clic here to read the story from its source.