Greece: Manufacturing PMI declines in September but remains comfortably in expansionary territory
October 1, 2021
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) came in at 58.4 in September from 59.3 in August. That said, the PMI remained well above the critical 50-threshold, signaling another solid improvement of operating conditions in the manufacturing sector compared to the previous month.
September’s result largely reflected solid expansions in new orders and output, which was, however, capped by a marked deterioration in vendor performance amid persistent supply chain disruptions. Regardless, strong foreign demand buoyed new export orders, which expanded at the sharpest rate in three months. Against this backdrop, manufacturers increased their staffing levels, albeit at a somewhat softer pace than in August, while sentiment with regards to output in the coming 12 months remained strong.
On the price front, higher costs stemming from raw material shortages and persisting logistics disruptions resulted in record-high input cost inflation and prompting firms to raise their selling prices.
Siân Jones, senior economist at IHS Markit, said:
"We expect industrial production to rise 6.6% on the year in 2021, but output growth may continue to be hampered through the final quarter as supply-chain disruptions persist."
Author: Alexandros Petropoulos,