Greece: PMI rises slightly in March
April 1, 2016
The Markit manufacturing Purchasing Managers’ Index (PMI) rose slightly in March, increasing to 49.0 from 48.4 in February. Despite the rise, the index still lies below the 50-threshold that separates contraction from expansion in the manufacturing sector.
According to Markit, March’s reading points to a softer downturn in the sector as the contraction in output eased slightly. However, weak demand was still seen in both domestic and foreign markets. On a positive note, jobs were added in March, although the rise was modest overall. Meanwhile, price pressures remained muted on the back of the low oil price environment and input prices declined for the third consecutive month. Markit analysts commented that, “survey data for March signals a further deterioration of operating conditions in the manufacturing sector of Greece. However, the downturn has eased considerably from the lows of last summer, with the average PMI score for Q1 2016, climbing to the highest since Q4 2014. Still below the crucial 50.0 no-change mark, this points to a contraction in Greece’s GDP in the first three months of 2016, nonetheless.”