Greece: Manufacturing PMI increases in August but remains in contractionary territory
September 1, 2020
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) rose from 48.6 in July to 49.4 in August. Despite the increase, the PMI remained below the critical 50-threshold, separating deterioration from improvement in operating conditions of the manufacturing sector.
August’s upturn was driven by softer drops in new orders and output. That said, firms stressed that demand conditions remained muted amid the impact of Covid-19 restrictions, particularly on the tourism and hospitality sectors. Meanwhile, businesses expectations strengthened in August and reached a six-month high, while companies registered the first expansion in workforce numbers since February. On the price front, although input cost inflation rose to the highest in seven months, goods producers discounted their selling prices further in a bid to prop up sales.