The Clap
The Purchasing Managers Index (PMI) reached its best level in 6 months with 47.6 points in August 2022, an increase from 46.4 in July 2022.
Why
The S&P Global report said that lower inflationary pressures led to lower customer spending constraints, which led to increased production and new orders.
But
Despite the increase, the reading of the index indicates a continued low level in commercial activity and sales, in addition to the lack of activity in certain sectors such as manufacturing, services, construction, wholesale, and retail.
In contrast to July 2022, exports for Egyptian companies declined in August.
Why this Matters
The PMI result shows that the economy is still in a downturn.
The result of the PMI when it registers less than 50 points, it means that the economy is in a contraction phase, and if it is more than 50 points, it means that the economy is expanding.
PMI hits highest level in 6 months 🔝
