Greece: PMI falls in January
February 2, 2017
The Markit manufacturing Purchasing Managers’ Index (PMI) dropped in January, falling to the lowest level since September 2015. The PMI came in at 46.6, down from December’s 49.3. The index lies below the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to IHS Markit, the deterioration came on sharp falls in output and new orders. Firms reported that heavy snowfall in the beginning of the year hurt production. The drop in new orders caused firms to lower employment and work through backlogs. IHS Markit analysts commented that, “to compound the current misery for goods producers, latest PMI data also signalled the strongest rate of cost inflation for 70 months. With competitive pressures preventing businesses from raising their selling prices, operating margins tightened and consequently firms look set to try to alleviate their cost burdens over the coming months.”