Greece: Greece manufacturing sector sees stronger growth in March
The S&P Global Greece Manufacturing Purchasing Managers’ Index (PMI) rose to 56.9 in March from 55.7 in February. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in manufacturing sector operating conditions compared to the previous month.
The improvement was driven by sharper increases in new orders and in production volumes. Greek manufacturers experienced the strongest rise in new sales since November 2021, attributed to increased demand from both domestic and foreign clients. New export order growth quickened to the fastest in over two years, leading to the steepest rise in output levels since August 2021. This upturn in new work allowed firms to raise staffing numbers at the fastest pace since April 2022, indicating a robust expansion in the sector’s output and orders.
Regarding prices and business sentiment, cost pressures intensified due to disruptions in logistics routes, notably through the Suez Canal, leading to a steep increase in input costs. Amid these challenges, firms continued to pass higher costs onto customers, with output charges rising at a historically elevated pace. However, the rate of increase in selling prices eased from February. Business confidence regarding future output softened slightly, reaching a three-month low, even as firms remained optimistic about a rise in output over the coming year, driven by the sharp upturn in new orders.