September factory activity falls, output, new orders decline

Greek manufacturing activity shrank slightly in September after falls in production and new orders as higher selling prices dampened customer spending and demand, a survey showed on Monday.

S&P Global’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about 10% of the Greek economy, rose to 49.7 in September from 48.8 in August, marking the third straight month of contraction. Readings above 50 mark expansions in activity.

“Greek manufacturers rounded off a challenging quarter by registering further declines in output and new orders. Although rates of contraction eased from August, client demand remained weak,” said S&P Global economist Sian Jones. Rebounding inflationary pressures and hikes in energy and transport costs had an impact on sales, she said.

Production declined again in September as a result of a continued contraction in new orders.

Lower output was linked to weak client demand and the impact of higher selling prices on customer purchasing. [Reuters]