Private companies’ struggles re-emerging

Egypt’s non-oil producing private sector companies witnessed declines in both outputs and new orders in January, according to HSBC’s Purchasing Manger’s Index (PMI). Headline PMI registered 48.7 in January, down from 52 in December and 52.5 in November.

The decline underscores the long and difficult road Egypt faces to economic recovery, said Simon Williams, HSBC’s chief economist for the Middle East.

“The readings for output, orders and employment are weak and appear particularly troubling given the low base,” Williams said. “Confidence will remain fragile until security has improved and the political outlook has cleared.”