Greece: Manufacturing PMI ticks down in January
February 1, 2019
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) inched down to a three-month low of 53.7 points in January from 53.8 points in December. Despite the downtick, the PMI lies comfortably above the critical 50-point threshold that separates expansion from contraction in business conditions in the manufacturing sector, where it has been for over a year.
January’s print was supported by solid growth in production, new orders and job creation. Output expanded at one of the fastest rates since early-2018 while new orders continued to rise strongly in January on the back of greater local and foreign demand. Notably, growth in new export orders quickened to a one-year high despite ongoing global trade tensions. Amid greater output requirements, manufacturers also stepped up their staff intake, with employment increasing at the join-fastest rate on record in January. On the price front, input cost inflation eased to an over two-year low and firms lowered output prices in a bid to attract new clients. Lastly, business confidence increased to one of the highest levels in series history due to an upbeat outlook by firms.
Author: Javier Colato, Economist