IHS Markit: Greek manufacturing improves for the second consecutive month

Conditions in Greek manufacturing improved for the second consecutive month in April thanks to increased production, new orders and employment, according to Reuters, while material shortages led to a sharp rise in costs, according to a survey published on Tuesday.

The main Purchasing Managers’ Index for Greek manufacturing (PMI) closed at 54.4 points in April, from 51.8 points in March, according to the monthly survey of IHS Markit. Measurements over 50 indicate industry growth.

The increase in the influx of new orders was generally moderate, but the first in more than a year, the survey said.

“Greek manufacturing companies indicated further steps towards recovery in April, as production and new orders returned to growth due to reports of increased customer demand,” said Sian Jones, IHS Markit economist .

“Although export orders continued to decline, they declined at the slowest pace since last September, after which stricter COVID-19 austerity measures were imposed in many key export markets,” he added.

The recruitment of additional staff is growing at the fastest pace since the outbreak of the pandemic, as production expectations have risen over the next 12 months.

The level of optimism has reached the highest level recorded since February 2020 thanks to hopes for the lifting of pandemic mitigation measures and stronger demand from customers.

“According to our current forecasts, industrial production is expected to increase by 2.8% by 2021,” Jones said.

Delivery times have been extended to the highest level since the pandemic took place a year ago, as delays in shipments and material shortages have reportedly led to longer delivery times and rising costs.

As companies passed on some of the highest costs to their customers, billing rates rose at the fastest pace since the survey began in November 2002.