Greece: PMI rises but remains in contraction territory in May
June 2, 2015
The Markit manufacturing Purchasing Managers’ Index (PMI) rose from 46.5 in April to 48.0 in May. April’s result had marked a 22-month low. Despite May’s improvement, the index remains below the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to Markit, May’s rise came on the back of a slower fall in output compared to the previous month. Meanwhile, new orders fell for the ninth consecutive month, with new orders from abroad decreasing at a rate that mirrored April’s figure. However, the decrease in new orders resulted in a significant reduction of outstanding orders. Employment in May fell for the second consecutive month and at a slightly steeper pace than in April, although remaining modest overall. Regarding prices, cost inflation rose to a four-year high, against a backdrop of a weak euro and higher prices. Markit added, “the weaker euro is driving up costs but businesses aren’t seeing the benefit of an increase in competitiveness, with the uncertainty that hangs over the country stifling demand.”