Greece: PMI declines to 15-month low in January on election uncertainty
February 2, 2015
The Markit manufacturing Purchasing Managers’ Index (PMI) fell from 49.4 in December to 48.3 in January, which marked the lowest result since October 2013. As a result, the index is further from the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to Markit, the decrease in January mainly reflected decrease in both output and new orders. The fall in new orders was the quickest since October 2013 and, “partly attributable to uncertainty surrounding the elections.” Conversely, employment increased, but only slightly. Prices charged by goods’ manufacturers also dropped in January, continuing the downward trend that began in 2011 and illustrating lackluster demand. As pointed out by Markit, “the heightened uncertainty brought about by elections was reportedly a factor behind the sector’s worsening performance, though new business from abroad also fell again and this was the fifth time in a row that the PMI has posted below 50, suggesting that the causes of the sector’s malaise are more deep-rooted.”