Egypt's non-oil business activity rises slightly in June

Cairo: Egypt's non-oil private-sector business activity grew slightly in June compared to May, but remained in contraction with reductions in output and new orders, a survey showed on Tuesday.
The Emirates NBD Egypt Purchasing Managers' Index (PMI) for the private sector excluding the oil industry rose to 49.4 in June from 49.2 in May, below the 50 mark that separates growth from contraction.
Output contracted for the second month running, driven by weaker demand, the survey said.
Companies who reported a reduction in new orders linked the decline to market stagnation. "June saw a further contraction in the volume of new business received by Egyptian non-oil private sector businesses," it said.
Daniel Richards, Mena Economist at Emirates NBD, said the survey showed the private sector "continues to lag" as Egypt tries to fix its economy, despite some positive indicators.
"The failure to consistently post above the 50.0 mark reflects the fact that Egypt's economic recovery has to now been achieved primarily through external rebalancing and government investment," he said.
Richards said business optimism remained "upbeat", however, with some of the most positive PMI readings in years in the first half of 2018.
Egypt's economy has been struggling to recover since a 2011 uprising scared away tourists and investors, two big sources of foreign currency.
Tough economic reforms tied to a three-year, $12 billion programme agreed with the International Monetary Fund in late 2016 have hit Egyptians hard. A much weaker Egyptian pound has cut purchasing power and contributed to soaring inflation in the import-dependant country.