Greece: Manufacturing PMI bounces back from record-low in May as economy reopens
June 1, 2020
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) bounced back from a record-low 29.5 in April to 41.1 in May. Despite the jump, however, the PMI remained well below the critical 50-threshold, indicating a deterioration in operating conditions in the manufacturing sector.
May’s increase came as the lockdown measures to contain the spread of Covid-19 started to be gradually lifted. Both output and new orders contracted in May, albeit at a softer pace than in previous month, as weak demand conditions continued to bite. Amid lower new business and excess capacity, manufacturers slashed their workforce numbers again. On the price front, input costs declined for the second consecutive month and goods producers cut selling prices markedly in efforts to lift sales. Meanwhile, businesses remained pessimistic in the surveyed month, with concerns lingering over a slow recovery ahead and difficulties accessing credit.
Author: Javier Colato, Economist