Greek factory activity expanded in July for the sixth month in a row, as output and new orders grew and jobs rose at the fastest pace in a year due to strong domestic and overseas demand, a survey showed on Tuesday.
S&P Global’s Purchasing Managers’ Index (PMI) for Greek manufacturing, which accounts for about 10% of Greece’s economy, rose to 53.5 in July from 51.8 in June, the sharpest expansion since May 2022.
Readings above 50 indicate growth in activity.
Output production rose sharply due to stronger domestic and foreign client demand. The rate of growth, accelerating from June, was among the fastest in a year-and-a-half, the survey showed.
New orders grew again in July leading to a renewed rise in backlogs of work which had fallen for 14 straight months. Jobs grew at the fastest pace since April 2022.
New export orders rose modestly but the pace of growth was the steepest since February 2022.
“Greek manufacturers saw further expansion across the sector, as output and new order growth gained pace,” said S&P Global economist Sian Jones.
“Domestic and foreign client demand supported the fastest rise in new sales since the start of 2022, with firms expanding employment and input buying in anticipation of additional upticks in orders and amid renewed growth in backlogs of work.”
But weak global demand conditions pushed suppliers to offer discounts and input costs decreased at a faster pace although selling prices were broadly unchanged in July.
“Despite a solid drop in cost burdens, firms saw selling prices stay broadly unchanged for a second month running, suggesting inflation may remain sticky over the coming months,” Jones said, adding that industrial production was expected to rise by 0.4% in 2023.
Greek manufacturing firms recorded less upbeat expectations for the year ahead in July, mainly due to concerns over unfavourable conditions in key export markets, inflation and further hikes in interest rates.
Source: Hellenic Shipping News
