Egypt business activity shrinks in May - PMI

Business activity in Egypt shrank for the third month in a row in May, a poll showed on Tuesday, in a sign the economy remains fragile as former army chief Abdel Fattah al-Sisi is set to become the country's next president.

Egypt's economy has been hit by more than three years of political and economic turmoil after the 2011 uprising against veteran autocrat Hosni Mubarak.

The government is walking a fine line in an attempt to boost revenues and cut a high deficit at the same time as luring investors into the country.

The HSBC Egypt Purchasing Managers Index (PMI) for the non-oil private sector stood at 48.7 points in May, down from 49.5 in April.

Readings above 50 indicate expansion, while those below 50 point to contraction. The index had been below 50 for 13 months through October.

"It's another disappointing number and contains no signs that the economy is starting to recover - output is weak, new orders are falling and employment is contracting," said Simon Williams, Chief Economist for the Middle East at HSBC.