Downturn in Greece manufacturing sector deepens further in March

Greece PMI dipping to it second-lowest level in the past year-and-a-half, data from IHS Markit showed on Monday. The downturn was driven by another sharp decrease in new orders, which in turn contributed to a further drop in output.

Seasonally adjusted Markit Greece Manufacturing Purchasing Managers’ Index fell to 46.7 in March, down from 47.7 in February, the latest figure signalled a seventh successive deterioration in Greek manufacturing sector conditions.

Output and new orders continued to fall and at sharper rates. In turn, this led to a further drop in staffing numbers, thereby compounding the country’s stubbornly high level of unemployment. Furthermore, the rate of inflation was only marginally weaker than January’s 70-month high.

That said, firms remained confident that output would expand over the coming 12 months. Firms anticipate a rise in output over the next 12 months, citing hopes of an improvement in client demand and reduced financial uncertainty.

“Greece is suffering an increased rate of contraction of its manufacturing economy, with exports dropping sharply again in March.” said Chris Williamson, chief business economist at IHS Markit.