Greek factory activity ticks up in June, new orders rise – PMI

Greek factory activity expanded in June for the fifth month in a row, as rising output and orders spurred a new round of hiring, a survey showed on Monday.

S&P Global’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about 10% of the Greek economy, ticked up to 51.8 in June from 51.5 in May and held above the 50 mark indicating growth in activity.

New orders grew for the fifth month in a row, with the increase linked to greater funding availability for customers. However, new export orders rose only marginally, with growth stymied by some reports of customer hesitancy in European markets.

Output rose further with evidence suggesting stronger demand and a diversification of products which drove new client wins.

“The health of the sector improved again, as new order growth quickened, spurring on further job creation,” said S&P Global economist Sian Jones.

“Companies did, however, run down their safety stocks at sharper rates as buying activity fell,” Jones added.

Input prices fell for a second month in a row on lower demand for inputs globally and softer energy and transport costs, although the fall slowed on material shortages and a poorer performance from vendors.

“At the same time, selling prices dropped only fractionally, suggesting the goods inflation could prove sticky,” Jones said.

Greek manufacturers remained upbeat about output over the coming year on positive developments in new government funding plans and on hopes that global demand will improve.

S&P Global anticipates broadly stagnant industrial production in 2023.
Source: Reuters (Reporting by Angeliki Koutantou; Editing by Toby Chopra)