Greece: Manufacturing PMI returns to contractionary terrain in February
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) dropped to 49.4 in February from January’s 50.0. As a result, the PMI landed below the critical 50-threshold, signaling a mild deterioration of operating conditions in the manufacturing sector compared to the previous month.
February’s downturn was largely owing to a stronger decline in output and new orders, as the nationwide lockdown continued to hamper client demand. On a brighter note, although new export orders contracted again, they did so at the softest pace since last September. Moreover, manufacturers remained optimistic over output in the coming 12 months, amid hopes of a swift deployment of vaccines at home and in key international markets. On the price front, significant supply chain disruptions resulted in a spike in input prices with cost inflation rising at the sharpest rate in over two decades. This prompted firms to hike their selling prices at the quickest pace since July 2008.