IHS Markit: Greek PMI rose to nine-and-a-half year highs in December

Business conditions in the Greek manufacturing sector improved in December at the fastest rate since June 2008, IHS Markit said in a report released on Tuesday. The report said that new order grew at the fastest rate in the the last nine-and-a-half years, with production recording the second biggest growth since August 2008 and business optimism rising to new record-highs.

Markit said the Purchasing Managers’ Index (PMI) rose to 53.1 points in December from 52.2 points in November, recording the strongest improvement of business conditions recorded since June 2008. The index remained on a growth course for the seventh successive month, the biggest period since 2008. Markit said this development was the result of a further significant increase in new orders, both from the domestic and external markets, with manufacturing companies raising their purchasing activity and their workforce. Average sales prices fell compared with November while inflow prices remained unchanged in December.

Producers of consumer goods remained at the top among sectors with the better performance in December. Manufacturing companies said that new export orders grew at the fastest rate since April 2008, while companies hire more workers for the eighth successive month. Pending work volume fell in December while inventories fell faster compared with November. Greek manufacturing companies raised their purchasing activity in December, at the fastest rate in more than 10 years,

Alex Gill, an economist in IHS Markit, commenting on the report said the manufacturing sector in Greece ended 2017 in positive levels as business conditions improved at the fastest rate in nine-and-a-half years. These data raised hopes that the Greek economy has changed its course and was now on a recovery course.

The PMI is a composite index measuring business activity in the manufacturing sector. Readings above 50 indicate a growing sector and readings below 50 a shrinking sector.