Greece: Manufacturing PMI plummets to record low in April amid Covid-19 hit
May 4, 2020
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) plummeted from 42.5 in March to 29.5 in April, marking the lowest reading since data collection began in May 1999. Thus, the PMI fell deeper below the critical 50-threshold, indicating a deterioration in operating conditions in the manufacturing sector.
April’s plunge mainly reflected stark contractions in production and new orders, with both falling at a record pace, as the spread of the Covid-19 pandemic led to a collapse in domestic and foreign demand as well as a sharp pullback in production capacity. Moreover, the resulting spare capacity and closure of factories led manufacturers to cut their workforce numbers at the sharpest rate in series history. On the price front, input costs declined markedly and goods producers slashed selling prices drastically in a bid to attract clients. Meanwhile, the bleak outlook for production and fears over a slow recovery led business confidence to decline to its lowest level since mid-2015.
Author: Javier Colato, Economist