The seasonally adjusted Purchasing Managers’ Index (PMI) for Greece’s manufacturing sector reached 53.2 units in April, down from 55 units in March. However, the index indicated a steady improvement in operating conditions across the goods-producing sector. Although the main index value declined compared to the previous survey period, it reflected one of the strongest increases in the sector recorded over the past ten months and remained above the survey average. According to S&P Global’s research, overall growth was driven by a further increase in new order inflows at the start of the second quarter. New sales rose for the sixth consecutive month due to continued customer demand and reports that more customers are choosing domestically produced goods. The rate of growth eased from the ten-month high recorded in March but remained solid. Export order growth also slowed and was generally marginal. Consequently, Greek manufacturers continued to record higher production levels as output increased at a steady pace in April. Despite the slowdown to a weaker three-month rate, the growth rate remained above the survey average. Meanwhile, supply chain disruptions continued to cause difficulties for manufacturers, with further delivery time delays noted in April. Survey respondents mentioned that material shortages and higher new order inflows led to another rise in outstanding work, albeit marginally. Most new orders spurred another round of job creation in April, with employment levels rising at a marked rate. This marked the fifth consecutive month of employment growth as companies extended production capacity following increased production demands. However, the rate of employment growth eased to its weakest in three months. Regarding prices, the cost of inputs faced by Greek manufacturers increased at a noticeably slower rate during April. The rate of input cost inflation was the weakest since February 2024 and below the survey average. While some firms reported higher prices for raw materials and imported goods, others noted that the cost of certain key inputs moderated. Data for April indicated a weaker rate of output charge inflation. Greek goods producers moderated their selling price increase rates due to slower input cost rises and efforts to remain competitive. Despite the easing, the rate of charge inflation remained historically high. Although they registered the sixth consecutive monthly increase in input purchases, Greek manufacturers indicated the slowest rise in purchasing activity since last November. Survey respondents cited the use of inventories to fulfill production needs, as supplier inventories returned to contraction territory. Conversely, supply chain challenges and longer input delivery times prompted efforts to build safety stock of finished goods. However, the increase in finished goods inventories was generally marginal. Finally, in April, Greek manufacturers remained optimistic about production growth over the coming year. Reports within the survey highlighted planned investments in new machinery and the development of new products, which bolstered confidence. Confidence levels were above the survey average, although they eased from the 14-month high seen in March.
S&P Global: Steady Improvement in Greece’s Manufacturing Sector in April 2025
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