Greece: Manufacturing PMI edges down in July but remains comfortably in expansionary terrain
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) came in at 57.4 in July, below June’s 58.6. However, the PMI remained comfortably above the critical 50-threshold, signaling a solid improvement of operating conditions in the manufacturing sector compared to the previous month.
July’s result was largely driven by a marked expansion in output, on the back of higher client demand, amid the easing of domestic Covid-19 curbs. Similarly, new orders expanded at a solid pace—albeit softening from the prior month— and new export orders grew notably, on strengthening foreign demand. However, anecdotal evidence suggests that raw material shortages capped the growth in output. This, also pushed input cost inflation to a fresh record high and resulted in high factory-gate prices, which weighed on competitiveness as a result. Against this backdrop, business confidence deteriorated, amid worries surrounding future supply flows and price stability.