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Heavy snow weighs on Greek manufacturing performance in January

Staff Writer | February 6, 2017
Greek manufacturers felt the effects of unexpected heavy snowfall in the opening month of the new year, with the health of the sector deteriorating at the sharpest pace since September 2015.
Greek manufacturers
Greece   Markit Greece Manufacturing PMI
The downturn was driven by marked declines in both output and new orders, subsequently leading firms to reduce their headcounts further.

On the price front, input cost inflation accelerated to a 70-month high, however, firms lowered their selling prices.

January’s contraction was highlighted by the seasonally adjusted Markit Greece Manufacturing Purchasing Managers’ Index(PMI) – a composite indicator designed to measure the performance of the manufacturing economy – falling to 46.6.

Down from 49.3 in December, the latest figure was the lowest for 16 months and weak in comparison to the long-run series average (49.4).

New orders continued to decline in the Greek manufacturing sector during January.

In fact, the rate of contraction quickened since the end of 2016 to the fastest since September 2015.

Firms also recorded a substantial drop in new business from abroad, the fifth successive monthly decline recorded.

In line with the trend for new work, Greek goods producers reduced their output at the beginning of 2017, with several firms highlighting heavy snow as the main factor for this decline.

The rate of contraction was marked and quickened to the fastest for 16 months.

Meanwhile, post-production inventories fell further.