Greek Purchasing Manager’s Index up to 48.2 points in April

Greek Purchasing Manager’s Index (PMI) improved to 48.2 points in April, from 46.7 in March, but remained in a recession level reflecting a strong decline in new orders and a fall in production, Markit said in a report released on Tuesday.

Manufacturing companies further reduced their workforce and their purchasing activity in the month, while a new strong increase in inflow prices, combined with unchanged outflow prices continued pressuring profit margins. However, manufacturing companies remained optimistic over an increase in production in the next 12 months.

PMI remained in a recession course for the eighth month in a row, although the rate of decline was the weakest recorded since last December.

Greek manufacturers show incoming new orders falling for the eighth successive month in April, while demand for Greek products from abroad fell significantly, although at the weakest rate compared with March. Greek companies cut their production for the eighth consecutive month in April, while inventories fell further.

Greek manufacturers further reduced their workforce in April, although at a very small rate and to cut pending works in the market. Purchasing activity fell for the fourth successive month and inventories eased further.

Greek companies suffered a new increase in inflow prices, but average sale prices remained unchanged compared with the previous month. Average delivery times extended in April, although manufacturing companies remained optimistic over growth outlook in the next 12 months.

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.