Egypt’s non-oil private-sector activity increased in July, posting rare positive growth in the first month of the new fiscal year, a survey showed on Sunday.
The Emirates NBD Egypt Purchasing Manager’s Index (PMI) for the private sector excluding the oil industry rose to 50.3 from 49.4 in June.
A reading below 50 indicates a contraction; above, an expansion. It was only the third time Egypt’s PMI posted above 50 in almost three years.
The survey showed new orders from both domestic and foreign sources helped the expansion.
“Though indicating only a marginal strengthening in business conditions, the headline figure hit an eight-month high as new orders entered expansion territory,” the survey said.
Daniel Richards, MENA economist at Emirates NBD, said the positive PMI reading “supports the view that real GDP growth will strengthen in 2018-2019.
“There is a greater recovery in the private sector, support by gradual monetary policy normalisation, improved political stability and a rebound in the tourism sector,” he said.
Egypt’s fiscal year runs from July to June.
The economy has been struggling to recover since a 2011 uprising scared tourists and investors away, two big sources of foreign currency.