Banking major HSBC issued its December Purchasing Managers’ Index (PMI) stating that the month saw a solid rise in the activity at Egyptian non-oil producing private sector companies. The bank said that the pace of expansion is accelerating to an all-time high and that new order intakes have increased.
The report pointed out that since November the output rate has increased, posting the highest recorded numbers in the survey’s history.
The bank attributed the output growth to the country’s stable conditions and higher demand.
“Client demand from foreign markets strengthened for the second consecutive month. The pace of expansion was the quickest in over a year-and-a-half,” the report read.
December’s PMI remained above neutrality registering 52.0, slightly down from November’s record high of 52.5. It signaled a second successive monthly improvement in the operating conditions at Egyptian non-oil producing private sector companies.
The report also said that the inflation rate accelerated to a five month high.
“Despite higher input costs, Egypt’s non-oil producing private sector firms slightly lowered their charges in December in an attempt to attract new customers,” the report pointed out.
HSBC reported that suppliers’ delivery times have lengthened for the thirteenth month in a row in December, but at a slower pace than in previous months.