05 Oct 2021

IHS Markit’s Egypt PMI (Purchasing Managers’ Index) dropped to 48.9 in September 2021, down from 49.8 in August 2021. While business confidence was at a record high, marginal declines in output and new orders were reported, yet were still above their long-term averages. This comes as purchase costs were rising at the highest pace in 3 years, partly caused by global supply chain bottlenecks and shortages. Nevertheless, employment levels actually increased for the third month in a row.

Companies reported a strong conviction that business activity will strengthen during the coming year, and that Egypt will post a solid recovery from the pandemic. One of the main factors that drove this confidence was the easing of international travel restrictions, which should lead to a strong recovery in tourism as pent up demand for leisure travel begins to result in higher tourist inflows. Other positive local and global developments contributed to this highly positive outlook.

(Source: IHS Markit (English), Reuters (English), Zawya (English), Business Today Egypt (English), al-Ahram (English), Egypt Today (English), Arab News (English), Amwal al-Ghad, Mubasher, Hapi Journal, CNBC Arabia)