Greece: PMI rises to over two-year high in June
July 1, 2016
The Markit manufacturing Purchasing Managers’ Index (PMI) returned to expansionary territory in June, posting the best result in over-two years. The PMI rose from 48.4 in May to 50.4 in June. As a result, the index lies above the 50-threshold that separates expansion from contraction in the manufacturing sector.
According to Markit, June’s reading game on the back of the largest rise in employment in almost nine years. In addition, output expanded for the first time in 2016. Despite these positive developments, evidence suggest that demand conditions remain weak and new orders declined. In addition, port strikes increased delivery times and pushed up input costs. On top of this, increased taxes and steel prices also contributed to a rise in input costs. Markit analysts commented that, “with austerity measures in the economy continuing to take their toll, culminating in further port strikes, most notably at Piraeus and Thessaloniki, the manufacturing sector still has a few obstacles slowing its path to a full recovery. However, the signs of output picking up and employment rising will encourage manufacturing firms as they enter into the second half of 2016.”