Greece: Manufacturing PMI returns to expansionary terrain for the first time in over a year in March
April 1, 2021
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 51.8 in March from February’s 49.4, logging the best reading in over a year. Moreover, the PMI landed above the 50-threshold for the first time since February 2020, signaling an improvement of operating conditions in the manufacturing sector compared to the previous month.
March’s upturn was largely attributed to higher employment, amid firms’ stronger confidence regarding future output—the second highest since the Covid-19 outbreak. Moreover, output and new orders fell at a softer pace than in the previous month. On the price front, raw material shortages and logistics disruptions resulted in record-high input cost inflation, prompting manufacturers to raise their selling prices at the quickest pace in at least two decades.
Siân Jones, Senior Economist at IHS Markit, highlighted:
“Greek manufacturing operating conditions improved for the first time in over a year in March. That said, declines in output and new orders remained, with domestic and foreign client demand struggling to rally. […] Stronger demand conditions will be dependent on the re-opening of the tourism and hospitality sector, however."
Author: Alexandros Petropoulos,