Egypt's non-oil business activity drops for 18th consecutive month in March

Business activity in Egypt shrank for the 18th straight month in March, a survey showed on Tuesday, as lower demand and unstable economic conditions contributed to steep declines in output and new orders.
The Emirates NBD Egypt Purchasing Managers' Index (PMI) for the non-oil private sector fell to 45.9 in March from 46.7 in February, remaining below the 50-point mark that separates growth from contraction.
The survey showed that output also contracted for the 18th consecutive month to 44 in March from 44.3 the previous month. New orders also declined to 43.8 from 44.
"The March PMI highlights ongoing weakness in Egypt's private sector," said Tim Fox, Head of Research and Chief Economist at Emirates NBD.
"Although the economy's rebalancing process is proceeding as one would expect - evident through a narrowing in the trade deficit and higher FX reserves - it will take some time before this translates into stronger growth momentum."
The employment index was up slightly to 47.2 in March from 47 in February, but this marked the 22nd month that it was below 50, indicating shrinking employment.
Egypt has been struggling to revive its economy since a popular uprising in 2011 drove both investors and tourists away, depriving the country of the foreign currency it needs for importing raw materials.