Greece: PMI returns to contractionary territory in September
October 3, 2016
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) deteriorated in September, erasing most of the gains made in August. The PMI fell from 50.4 in August to 49.2 in September, bringing the index below the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to IHS Markit, September’s reading came on the back of declines in both new orders and output. In addition, firms took on staff at the weakest pace seen in four months and the stock of finished goods declined. A shortage of raw materials pushed up input costs and firms reported tight liquidity conditions in the country. IHS Markit analysts commented that, “although the headline PMI was not as weak as this time last year there was still little to encourage the sector, with all signs pointing towards a more severe slowdown during the final quarter of the year.”