Markit: Greek PMI grew for fifth successive month in October

The Greek manufacturing sector continued growing in October, although at a slower pace compared with the previous month, Markit said on Wednesday.

In a monthly report, Markit said that manufacturing growth was supported by strong demand from domestic and international markets, leading to higher purchasing activity, employment and production levels. At the same time, higher raw material prices contributed in accelerating the growth rate of inflow prices, while strong demand conditions allowed some companies to raise their outflow prices.

Greece’s seasonally-adjusted Purchasing Managers’ Index (PMI) was 52.1 points in October, slightly down from a 52.8 points reading in September, remaining on a growth course for the fifth successive month.

A new increase in new orders was the driving force behind this positive trend. The growth rate was slower compared with September, but remained among the stronger recorded in the last decade. New orders grew strongly both in the domestic and external markets, while export orders recovered after a decline in September recording their strong growth rate since August 2016.

Manufacturing companies hired more workers in October, extending this trend for the sixth successive month, while the growth rate was one of the highest recorded since May 1998. The volume of pending works continued falling, although at the weakest rate in 16 months. Companies raised their purchasing activity, while inventories continued falling. Strong demand and increased production capacity lead production to its fifth successive monthly increase, although slightly weaker compared with September.
Manufacturing companies were more confident in October, recording three-and-a-half years high, while inflow cost grew more reflecting higher raw materials’ prices.

(PMI measures business activity in the manufacturing sector. Readings above 50 indicate a growing sector, while readings below 50 a shrinking sector.)