Cairo - Mubasher: Egypt's non-oil private sector activity edged up to growth at the end of the first half (H1) of 2021 thanks to an increase in activity, export volumes, and tourist numbers, a survey showed on Tuesday. 

The seasonally adjusted IHS Markit Egypt Purchasing Managers’ Index increased to 49.9 in June, compared to 48.6 in May, slightly down from the neutral 50.0. A reading above 50 indicates expansion, while a reading below that signals contraction.

"A second successive rise brought the Egypt PMI almost to the 50.0 growth mark in June, posting 49.9 to record its highest reading in seven months," David Owen, an economist at IHS Markit, said. 

Output and new orders grew for the first time in seven months as export sales grew at the fastest pace since February. 

In the meantime, employment declined as several businesses reported not replacing voluntary leavers.

"Input price inflation picked up again in June, giving both firms and consumers cause for concern. The latest rise in cost pressures was the sharpest for almost two years, as commodity prices, particularly metals and plastics, drove a steep increase in purchasing costs," Owen noted. 

Output charges inched up as many firms tried to boost sales growth; however, a surge in prices is expected later in the year if demand picks up.

The outlook for non-oil activity declined from May's recent high, but was still higher than the survey average, as around half of all panellists forecast an expansion over the next 12 months.