Greece: Greek manufacturing sector surges: PMI indicates strong growth
The S&P Global Greece Manufacturing Purchasing Managers’ Index (PMI) rose to 55.7 in February from 54.7 in January, showing a sharp improvement in the health of the manufacturing sector. February’s print marked the best reading in two years. 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.
February’s surge was primarily driven by the sharpest increase in new orders since December 2021, which in turn accelerated output growth to the fastest in two years. The rise in production requirements led to a notable increase in employment and input buying. That said, challenges such as raw material shortages and supplier delays due to transportation issues resulted in stock depletions.
Regarding prices, input cost inflation eased slightly. That said, firms rose their selling prices at a steeper rate, attributing the increase to favorable demand conditions. Lastly, Greek manufacturing firms remained confident about the future, expressing the second-highest level of optimism in over two years, buoyed by expectations of further increases in new work and planned investments in new machinery and equipment.