Greece: PMI returns to contractionary territory in February
March 1, 2016
The Markit manufacturing Purchasing Managers’ Index (PMI) edged down in February, falling from January’s 50.0 to 48.4. As a result, the index now lies below the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to Markit, February’s reading came on the back of contractions in output and new orders. Orders from abroad fell at the sharpest pace since September, partly due to transportation difficulties caused by ongoing strikes in Greece. In addition, jobs were cut, although the rate of loss was marginal overall. Meanwhile, input prices recorded the largest fall since January 2009. Markit analysts commented that, “coupling PMI data with latest GDP figures also paints a gloomy image of the current state of the economy. The 0.6% contraction for the fourth quarter of 2015 was the worst amongst eurozone members and added to the growing uncertainty around Greece’s future. With proposed pension and tax reforms already creating economic headwinds, the prospect of moving out of this technical recession appears distant at present.”