Greece: Manufacturing PMI jumps in June as coronavirus restrictions are lifted
July 1, 2020
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) jumped from 41.1 in May to 49.4 in June. Thus, the PMI landed marginally below the critical 50-threshold, indicating a fractional deterioration in operating conditions in the manufacturing sector.
June’s rise was driven by the reopening of customers and international markets as Covid-19 related restrictions continued to be eased. Both output and new orders contracted again, but at a significantly softer pace than in May. That said, demand conditions remained weak, which, coupled with months of shutdown, led manufacturers to slash their workforce numbers yet again. On the price front, input costs declined for the third month running and goods producers cut selling prices in a bid to attract new customers and fuel sales. Lastly, businesses turned optimistic for the first time since February on an improved outlook over the reopening of the economy and securing new clients.
Author: Javier Colato, Economist