Greece: PMI recovers more lost ground in October
November 2, 2015
After hitting the lowest level on record in July, the Markit manufacturing Purchasing Managers’ Index (PMI) recovered lost ground in October and hit a five-month high. The manufacturing PMI increased from 43.3 in September to 47.3 in October. Despite the increase, the index still remains below the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to Markit, October’s reading was driven partly by a more moderate contraction in output and new orders. However, the contractions were still sharp overall. Markit highlighted that capital controls and payment difficulties were behind the low business levels recorded. Employment in October fell again, but at a more moderate pace compared to September. Regarding prices, input costs rose further in October. Markit analysts commented that, “overall, the lack of capital circulating through the economy continued to take its toll on operating conditions at Greek manufacturers. However, the economic decline appears to be slowing to a more stable pace.”