PMI reflects problems in manufacturing

The significant decline in demand and new orders from both the domestic and international markets saw the Greek purchasing managers’ index (PMI) in manufacturing drop again in August.

According to S&P Global survey data, the PMI stood at 48.8 points in August compared to 49.1 points in July, remaining below the 50-point mark for the second month in a row, which indicates a recession. That’s because output fell sharply during August at the fastest pace since late 2020, driven by lower new order inflows and weak customer demand.

At the same time, the new orders received by Greek industrial goods producers fell sharply, which is attributed to the surge in prices and the increase in energy costs.

The developments regarding orders from abroad are also unfavorable. The rate of contraction in new export orders accelerated, while new sales to overseas customers fell at the sharpest pace since January 2021.

Also worrying are figures pointing not only to a reduction in new hirings in the manufacturing sector, but also a rise in layoffs. The reduction in the number of employees is the first recorded since December 2020.