Greece: Manufacturing PMI records worst reading since March 2021 in May
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 53.8 in May, down from April’s 54.8. May’s result marked the worst reading since March 2021. Consequently, the index remained above the 50.0 no-change threshold, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.
May’s slower improvement was driven by the absence of growth in new orders and softer output growth—both chiefly caused by the current inflationary pressures. On the back of this, companies reduced their inventories, with stocks of current inputs and finished goods declining. Meanwhile, hikes to input prices were passed on to customers as selling prices also increased at a rapid pace. Finally, business expectations improved, driven by a belief that prices will stabilize, and that demand and investment in new products will improve.