Greek factory activity grows at slowest pace in a year in Sept, PMI shows

Greece’s manufacturing sector expanded at its slowest pace in a year in September amid weakened demand that spurred renewed contractions in output and new orders, an S&P Global survey showed on Tuesday.

The seasonally adjusted S&P Global Greece Manufacturing Purchasing Managers’ Index (PMI) fell to 50.3 in September from 52.9 in August, marking the sixth consecutive month of decline.

A reading above 50 marks growth in activity.

“Greek manufacturers saw a notable slowdown in the pace of improvement in operating conditions as the third quarter was brought to a close,” said Siân Jones, Principal Economist at S&P Global Market Intelligence.

“Weak demand conditions spurred renewed contractions in production, new orders, employment and input buying,” Jones added.

According to the report, new orders declined for the first time since the beginning of the year, with bad weather conditions in key markets also affecting demand.

Output fell for the first time in 20 months, and at the fastest pace since December 2022. Employment declined for the first time in almost a year, partly due to difficulties in finding skilled staff and a drop in new sales.

On a positive note, inflationary pressures eased a tad, with input prices still rising, but at the slowest rate since April. However, firms continued to increase selling prices, albeit at a softer rate, to protect margins.

Despite the slowdown, Greek manufacturers remained optimistic for the year ahead, with output expectations reaching a three-month high, as they plan to invest in new product development and expand their customer base.

“Firms foresee subdued demand as a temporary issue,” Jones said.
Source: Reuters (Reporting by Athens bureau; Editing by Hugh Lawson)