Business conditions stabilize in January, input buying at its fastest since 2014

Business conditions in Egypt’s non-oil private sector broadly stabilized in January, according the Emirates NBD PMI reading for Januarycompiled by Markit. The reading came at 49.9, up from December’s reading of 48.3 — just shy of the 50.0 neutral mark — and above the long run average of 48.3. January’s performance mainly reflected stabilization in both output and new orders, with new export orders rises amid reports of greater demand from international markets. Companies’ input buying grew at its fastest rate since August 2014, the report noted. “The signs are encouraging as we begin 2018. A pick-up in new export orders in particular stands as an indication that the difficult economic reforms enacted in late 2016 are starting to pay off,” commented Daniel Richards, MENA Economist at Emirates NBD. The report also noted that companies retained optimism towards the 12-month outlook for output with a stronger degree of positive sentiment compared to the series average.