Egypt business activity grows at near-record pace in September: PMI

Business activity in Egypt expanded at a near-record pace in September, a survey showed on Tuesday, with a nascent economic recovery encouraging companies to hire for the first time in nearly 2-1/2 years.

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 trying to strike a balance between cutting its deficit whilst reviving economic growth, which fell to 2.1 percent in the 2012/13 fiscal year and remains far slower than the pace needed to create enough jobs for a youthful population of 86 million. Increased output and a sharp rise in new orders last month, however, appeared to suggest that confidence was beginning to return. At the same time, inflationary pressures stoked by a major reduction in government subsidies to the energy sector in July eased, with input and output prices rising more slowly.

The HSBC Egypt Purchasing Managers Index (PMI) for the non-oil private sector stood at 52.4 points in September, just a tick below the all-time high of 52.5 points hit last November. Readings above 50 indicate expansion while those below 50 point to contraction.