S&P Global: Greek manufacturing sector strengthened in March

S&P Global’s seasonally adapted managers were formed at 55.9 units for the manufacturing sector in Greece (Purchasing Managers’ Index – PMI) in March. More specifically, the supply index recorded an increased price in March compared to February, which was 55.5 units, indicating a faster improvement in the health of the manufacturing sector since February 2022. The growth rate accelerated for a sixth consecutive month and was markedly above the trend in research. The increase in the price of the main index contributed to a stronger increase in the new orders received by Greek manufacturers, according to S&P Global’s survey. The increase in new sales was the strongest recorded since November 2021, as companies attributed the rise to the greatest demand from customers from domestic and foreign. In fact, the increase in new export orders accelerated at the fastest rate recorded over two years. Therefore, the producers of goods increased production volumes as production levels increased at the highest rate recorded since August 2021. In parallel with the continued and strong rise in new jobs, companies linked the increase in production to investments in more efficient production processes. By analogy with the stronger increase in new orders, Greek manufacturers increased the number of staff at a faster rate. Employment growth has accelerated at the most severe rate recorded since April 2022, as companies reported a larger number of full-time and part-time workers. Increased production capacity allowed companies to continue to process in time the volume of unexecuted orders, as in-depth operations decreased at a steady pace. Nevertheless, the sharp rise in new orders slowed down the rate of reduction, as pending work declined at the weakest rate recorded since last August. The supply chain disruption was still a problem for Greek manufacturers, as the delivery times of the inputs were again significantly extended in March. The performance of suppliers decreased historically abruptly, due to the bypass of sea routes to avoid the Suez Canal. Therefore, the prices of imported materials increased at a faster rate. The total cost charge increased at the most severe rate recorded since January 2023, as suppliers increased the costs of raw materials and transport. Charge prices increased for a seventh consecutive month in March, as the rate of increase was historically higher. Although the companies continued to pass on the highest cost to customers, the rate of increase in sales prices has decreased since February. Depending on the increased production requirements and taking into account shipping delays, Greek manufacturers have increased the entry markets at the most severe rate recorded since December 2021. The companies also sought to replenish the stocks due to the material shortages. Stocks of inputs and ready products further declined, however at the slower rate recorded since January 2022 and December 2023, respectively. SOURCE: RES-BE