Greek manufacturing activity shrank slightly in September after falls in production and new orders as higher selling prices dampened customer spending and demand, a survey showed on Monday.
S&P Global’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about 10% of the Greek economy, rose to 49.7 in September from 48.8 in August, marking the third straight month of contraction. Readings above 50 mark expansions in activity.
“Greek manufacturers rounded off a challenging quarter by registering further declines in output and new orders. Although rates of contraction eased from August, client demand remained weak,” said S&P Global economist Sian Jones. Rebounding inflationary pressures and hikes in energy and transport costs had an impact on sales, she said.
Production declined again in September as a result of a continued contraction in new orders.
Lower output was linked to weak client demand and the impact of higher selling prices on customer purchasing.