Greece: Manufacturing PMI bounces back from near two-year low in July
August 1, 2019
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) bounced back to a three-month high of 54.6 in July from 52.4 in June, which had marked the lowest level in nearly two years. As a result, the PMI moved further above the critical 50-point threshold that separates expansion from contraction in business conditions in the manufacturing sector.
July’s upturn reflected faster growth in output, new orders and employment. New business rose sharply, which prompted manufacturers to increase output substantially. More upbeat demand conditions also led firms to raise their staff levels. On the price front, goods-producers raised their selling prices after having lowered them in June, while input cost inflation eased to an over three-year low. Lastly, confidence among manufacturers strengthened markedly, with sentiment reaching the highest point since the series began in July 2012.
Author: Javier Colato, Economist