Greece Manufacturing Sector Deterioration Slows In June
Greece’s manufacturing activity logged a fractional deterioration in June, amid a fall in output and new orders, survey results from IHS Markit showed Wednesday.
The manufacturing Purchasing Managers’ Index increased to 49.4 in June from 41.1 in May. A score below 50 indicates contraction in the sector.
Production declined at a slower pace in June and the rate of contraction was the softest since February.
New orders fell at a softer pace in June and new export orders declined marginally with the rate of decrease softening as foreign customers reopened.
The number of employment were reduced due to the shutdown of firms and backlogs of work declined strongly in June, albeit at a softer pace.
The degree of confidence was slightly below the long-run series, but below the levels seen earlier in 2020.
Input prices declined in June and selling prices fell for the fourth month in a row.
In June, pre- and post-production inventories declined further as firms used stocks to fulfill orders.
“The Greek manufacturing sector began to emerge from the chaos of the pandemic in June, as the contraction in production slowed to only a fractional rate,” Sian Jones, Economist at IHS Markit, said.
“Optimism returned, as firms expect an increase in output over the next year.”
“2020 will remain challenging, however, as industrial production is forecast to drop by almost 8 percent on the year,” the economist added.