Greece: Manufacturing PMI plunges to its lowest since 2015 debt crisis in March amid coronavirus outbreak
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) plunged from 56.2 in February to 42.5 in March, marking the lowest reading since the debt crisis of 2015 and putting an end to a near three-year streak of expansion. Thus, the PMI fell below the critical 50-threshold, indicating a deterioration in operating conditions in the manufacturing sector.
March’s slide mainly reflected strong contractions in production and new orders as the coronavirus outbreak prompted closures of factories and a collapse in domestic and foreign demand. Notably, the decline was cushioned somewhat due to longer supplier delivery times, but this was due to the coronavirus-induced disruption of supply chains. Both output and new sales fell at the steepest rate since the summer of 2015. Subsequently, manufacturers cut their workforce numbers sharply, while businesses turned pessimistic over fears of the duration of closures. On the price front, input cost inflation ticked up, while goods producers slashed selling prices in a bid to retain customers.