Greece: PMI edges up in May but business conditions remain bleak
June 1, 2017
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) inched up in May, but business conditions remained dismal in Greece’s manufacturing sector. The PMI came in at 49.6 in May, up from 48.2 in April. Although the rate of deterioration eased, the index lies below the 50-threshold, which signifies a contraction in the manufacturing sector.
May saw another month of falling new orders, prompting further contraction in output. The decline in new business was broad-based across both domestic and foreign goods markets. Despite tumbling output however, manufacturers took on additional staff for the first time in six months, but continued to purchase less inputs. Despite lower demand for input goods, costs continued to rise, reducing profit margins even further, and firms were forced to lower their sales prices to remain competitive. On a more positive note, businesses remained optimistic over future output.
Author: Nihad Ahmed, Economist