Greek Purchasing Managers’ Index (PMI) recovered to 49.6 points in May, from 48.2 in April, but remained in a recession trend for the ninth successive month, IHS Markit said in a report released on Thursday.
Markit said that Greek manufacturers reduced their production for the ninth month in a row, reflecting a further decline in demand, although the rate of decline was the second weakest during the nine-month period. Lower production led to a new decline in inventories. The volume of new works fell for the ninth month in a row, although at the slowest pace so far this year. Manufacturing enterprises reduced their purchasing activity for the fifth successive month in May, although at a slower rate compared with April. A decline in inflow purchases led to a further decline in supply inventories. Despite lower production, Greek manufacturers increased their workforce in May for the first time in six months, although slightly. The volume of pending works eased slightly, while average delivery times extended for the eighth month in a row. Manufacturers lowered their average selling prices in May, although cost burden increase more but at the slowest rate since November 2016.
Manufacturing enterprises remained optimistic over an increase in their production 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.