The private sector has been struggling all year with the impact of fuel price hikes, the introduction of a 5 percent value-added tax and higher fees for hiring foreign workers. Output growth jumped to 59.3 from 56.1, while growth of new orders accelerated to 59.2 from 56.7. Many economists expect the private sector to grow faster next year because of support from higher government spending, and November’s PMI data suggested that process might have started. Khatija Haque, head of regional research at Emirates NBD, noted that the average PMI year-to-date was lower than it was in January-November 2017, indicating a soft rate of expansion in the non-oil private sector by historical standards. However, some of the rebound in new order growth appears to be on the back of price discounting as well as increased marketing.”

Source: Egypt Independent December 06, 2018 04:18 UTC