Greek July factory activity slumps, new orders fall - PMI

ATHENS – Greek manufacturing exercise declined in July, hit by sooner contractions in manufacturing and new orders as excessive inflation took a toll on consumer demand, a survey confirmed on Monday.

S&P International’s Buying Managers’ Index (PMI) for manufacturing, which accounts for about 10% of the Greek economic system, fell to 49.1 in July from 51.1 in June, the primary studying beneath the 50.0 impartial mark since February 2021.

July’s studying was the quickest downturn within the well being of Greek manufacturing since December 2020. Readings above the 50 stage mark an enlargement in exercise.

“The lack of development momentum seen throughout the Greek manufacturing sector for the reason that begin of the yr resulted within the first contraction since February 2021,” stated S&P International economist Sian Jones.

The impression of inflation on buyer spending continued to hamper new gross sales and a pointy fall in new orders fed by way of to decrease manufacturing, she added.

The lower in output quickened to the sharpest for the reason that finish of 2020.

New orders shrank sharply in July, in distinction to the robust enlargement seen initially of the yr. They contracted on the quickest tempo since December 2020 with companies citing a fall in buyer buying energy because of extreme inflationary pressures.

Consumer demand from overseas worsened additional with new export orders declining on the steepest clip in a year-and-a-half.

Difficult demand circumstances led some producers to cut back hiring initially of the third quarter with employment rising solely fractionally.

On the value entrance, the speed of value inflation eased to the slowest since January 2021, with the rise in value burdens slowing from the report charges seen on the finish of 2021. Value hikes had been linked to greater power, uncooked supplies and transport.

Inflation of costs charged by companies eased to the slowest since August 2021, the survey confirmed.

“Inflationary pressures eased notably initially of the third quarter. Corporations handed by way of any reductions in prices, as promoting costs rose on the slowest tempo for nearly a yr,” Jones stated.