Egypt business activity steadier in May as employment rises: PMI

Business activity in Egypt's private sector, excluding oil, shrank for the fifth month in a row in May but edged closer to expansion as employment rose, a survey showed on Wednesday.

The HSBC Egypt Purchasing Managers Index rose to 49.9 in May, almost touching the 50 mark, above which signals growth in activity. The index rose from 49.8 in April.

"Latest PMI data for Egypt highlighted a further worsening in business conditions during May, led by a stagnation in new orders," Markit economist Philip Leake said.
However, the rate of contraction was negligible, with expansions in output and employment suggesting that the headline index could signal improvement in the near future."

Employment rose for the first time in six months, with some companies saying they raised staffing levels because of new projects.

President Abdel Fattah al-Sisi has pledged to reduce joblessness to 10 percent over the next five years. It stands at 12.8 percent according to the government's statistics agency, but analysts believe actual unemployment may be higher.