S&P Global: Greek Manufacturing Improved in May

The seasonally adjusted Purchasing Managers’ Index (PMI) for Greece’s manufacturing sector stood at 53.2, remaining stable compared to April’s value. According to S&P Global, “May data indicated an extension of the current period of continuous growth that started in February 2023. The recent improvement in the health of the goods-producing sector was generally significant and historically high.” The eighth consecutive monthly production increase by Greek manufacturing companies during May contributed to the improved operating conditions. The rate of growth accelerated from April and was generally significant, surpassing the survey average. Companies attributed the rise in production to higher inflows of new orders and sustained customer demand. New sales for Greek manufacturers also increased in May, although this growth slowed compared to the previous three months. However, it remained generally substantial. Reports from panel members within the S&P Global study revealed that the acquisition of new projects and clients supported the recent rise in new work. While domestic demand primarily drove the increase in new orders, external orders decreased for the first time in seven months due to U.S. tariff announcements and weak European market demand. Nevertheless, stronger new orders pushed companies to boost hiring efforts again in May, with employment levels rising at the fastest rate since January 2022. Members reported a robust job creation pace as companies largely added full-time staff. By mid-second quarter, manufacturers reduced their backlog of work for the first time in three months, with a strong reduction rate only surpassed by February 2025 figures. Suppliers’ performance declined monthly due to delays in transportation and material issues, affecting input costs which rose but at a slower pace than in the past 15 months. Consequently, producers moderated the rate of output price increases in May. Although historically high, the charge inflation rate was the weakest since last October. Greek manufacturers’ production expectations improved in May, driven by efforts to attract new clients, planned investments in new machinery, and product development. Finally, manufacturing companies reduced inventories during May, with both input and finished goods stocks declining significantly as they utilized reserves for production and faced difficulties replenishing existing stocks.