Greece: Manufacturing PMI rises to over 20-year high in May
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) came in at 58.0 in May, well above April’s 54.4 one-year high and logging the best result in more than 20 years. As a result, the PMI moved further north from the critical 50-threshold, signaling a strong improvement of operating conditions in the manufacturing sector compared to the previous month.
May’s stellar result largely reflect higher output and new business amid firming domestic demand and a nascent recovery in the crucial tourism and hospitality sectors. Similarly, new export orders swung back to expansion, ending 14-month streak of declining new overseas business. Against this backdrop, manufacturers increased their staffing levels at the sharpest pace since February 2020 and firms’ confidence rose further, also supported by the easing of domestic restrictions. On the price front, raw material shortages and supply disruptions exerted upward pressures on price with input cost inflation hitting a new record-high and prompting firms increase their selling prices notably.