Egypt’s non-oil sector closer to growth in June

Egypt’s non-oil private sector showed further signs of improvement in June, a survey released on Thursday showed.

The S&P Global Purchasing Managers’ Index for Egypt rose to 49.9 in June from 49.6 in May. Remaining below the 50.0 threshold separating growth from recession, it showed the North African country was approaching a recovery after 43 consecutive months of recession, Reuters reported.

“Egypt’s non-oil companies reported sales volume growth in June for the first time since August 2021,” S&P Global reported.

The survey was published a day after a new government was sworn in, tasked with taming inflation and boosting investment.

The new orders sub-index posted a gain of 50.2 points, the highest since August 2021. Manufacturing and services sectors showed the most promising signs, which companies said was linked to a recovery in market conditions. However, construction activity contracted.

Employment remained generally stable in June as some companies said they were hiring more people to meet rising demand, while others did not replace retiring workers or laid off employees.

S&P economist David Owen said businesses “appear to be heading toward an economic recovery.”

“If we see further growth in sales and purchases in the second half of this year, companies should have the motivation and the need to increase production,” Owen said.

An uneasy calm prevailed in the Kenyan capital on Thursday.

“While June saw the fastest rise in input prices in three months, companies generally said this was due to high volatility in market prices rather than accelerating inflation,” S&P Global said.