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Sixth successive decline in Greek manufacturing

Staff Writer | March 3, 2017
The health of the Greek manufacturing sector continued to deteriorate during February.
Greek manufacturing
Greece   Markit Greece Manufacturing PMI
Underlying the downturn was a further fall in new business, subsequently leading to another reduction in output.

As a result of lower production requirements, firms decreased their staffing levels and scaled back on input buying.

Meanwhile, manufacturers’ margins were squeezed by a further round of sharp cost inflation, combined with a fall in average selling prices.

In spite of this, expectations for future growth were the most optimistic in eight months.

February’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 – posting below the 50.0 no-change threshold.

At 47.7 in February, up from 46.6 in January, the latest figure signalled a sixth consecutive deterioration in the Greek manufacturing sector.

The rate of decline remained solid, albeit weaker than in the prior month.

At the heart of the overall downturn was a sixth successive fall in total new business.

Likewise, new business from abroad was also down on a monthly basis.

That said, the rates of contraction eased slightly from January in both cases.

In response to waning client demand, Greek manufacturers reduced their output in February, thereby continuing a trend that has been evident since September last year.

This, in turn, contributed to a hundredth consecutive decline in postproduction inventories.