Greece: PMI edges up in March, but remains in contraction territory
April 1, 2015
The Markit manufacturing Purchasing Managers’ Index (PMI) edged up from 48.4 in February to 48.9 in March. As a result of March’s rise, the index is slightly closer to the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to Markit, new orders decreased for the seventh straight month, weighed down in particular by falling new export orders as clients abroad are worried about the political situation in Greece. Production levels decreased again in March, but at a slower rate compared to previous months. Employment was up slightly. As pointed out by Markit, “[the PMI remained below 50 in March, signalling a further deterioration in business conditions facing manufacturers. One major concern is the trend in exports, which up until fairly recently had been acting as a support to the sector but are now an area of weakness as uncertainty deters foreign clients.”