Egypt business activity flat in February

Business activity in Egypt was unchanged in February after the previous month's deterioration, a survey showed on Tuesday, a sign the economy remains fragile after years of political and economic turmoil. The HSBC Egypt Purchasing Managers Index (PMI) for the non-oil private sector stood at 50 points in February, up from 48.7 points in January. Readings below the 50 point mark show deteriorating business conditions.

The index had been below 50 for 13 months through October. "The pick up in the score is welcome, but the gains are modest and come off a low base," said Simon Williams, Middle East Chief Economist at HSBC, in an accompanying statement. "The weak new orders reading and continued contraction in employment point to an economy yet to build momentum."

The Egyptian economy has been unstable since a popular uprising ousted autocrat Hosni Mubarak in 2011. It grew a mere 2.1 percent in the fiscal year ending June 2013 and only 1 percent between last July and September, according to latest government data. Political instability continues, with Egypt's interim government resigning last week. A new cabinet, including some previous ministers, was sworn in on Saturday, and a presidential election is expected later this year.