The IHS Markit Egypt PMI increased to 48.2 in December 2019 from 47.9 in a month earlier, pointing to the fifth straight month of contraction. Both output and new orders declined further, amid reports of subdued demand and liquidity issues. Meanwhile, employment shrank for the second straight month and at a faster rate than in November. At the same time, buying levels rose marginally, despite falling output requirements and a slight reduction in overall input stocks. In terms of prices, cost inflationary pressures remained cool, as a strong exchange rate against the USD helped firms to import goods at cheaper rates. Firms were encouraged to lower selling prices for the second straight month, with the rate of decline solid despite easing from November. Lastly, sentiment improved, with the degree of optimism stronger than the average for 2019, with some firms relating this to new branch openings and the Egyptian pound remaining strong against the US dollar. Manufacturing PMI in Egypt averaged 48.17 points from 2012 until 2019, reaching an all time high of 52.50 points in November of 2013 and a record low of 37.10 points in December of 2012. source: Markit Economics
Manufacturing PMI in Egypt is expected to be 48.80 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing PMI in Egypt to stand at 48.70 in 12 months time. In the long-term, the Egypt Non-Oil Private Sector PMI is projected to trend around 49.00 points in 2020, according to our econometric models.