Decline in Egyptian business activity slows in in December

Business activity in Egypt shrank for the third month in a row in December, a survey showed, though at a slower pace than the previous month as the contraction in output, new orders and employment eased.

Egypt has been struggling to revive its economy since a popular uprising in 2011 drove both investors and tourists away, depriving the country of foreign currency it needs for importing raw materials.

In a survey, the Emirates NBD Egypt Purchasing Managers Index (PMI) for the non-oil private sector rose to 48.2 points in December from 45 points in November, remaining below the 50-point mark that separates growth from contraction.

Output levels dropped for the third month with an index reading of 48.2 points in December, but the rate of decline was less than November's 42.7, the survey said, adding that nearly 24 percent of panellists noted a drop in output, with a number pointing to the fragility of client demand.

New orders also fell for the third straight month but at the slowest rate in as many months.

"After having quickened to the most marked since September 2013 in the prior month, the pace of decline was only modest and weaker than the average recorded over the survey's history," the survey said.

Egypt has been facing a currency crisis that economists blame on an over-valued pound. The central bank had been gradually weakening the pound, but then surprised markets by strengthening it by 20 piasters against the dollar to 7.7301 pounds, still far from the black market rate of 8.5 pounds.