Egypt business activity expands in August, hits 8-month high -PMI

Business activity in Egypt grew at its sharpest rate in eight months in August, a survey showed on Wednesday, as the economy rebounded strongly from the initial shock of cuts in energy subsidies last month.

Egypt's economy has been hit by more than three years of political and economic turmoil following the 2011 uprising that toppled Hosni Mubarak after 30 years in power.

The government is walking a fine line in an attempt to boost revenues and cut its deficit while luring investors. Increased output and a sharp rise in new orders last month, however, appeared to suggest that confidence was beginning to return.

The HSBC Egypt Purchasing Managers Index (PMI) for the non-oil private sector stood at 51.6 points in August, its most marked improvement since December 2013. Purchasing activity overall increased at the fastest pace since data collection began in April 2011.

Readings above 50 indicate expansion, while those below 50 point to contraction.