Business conditions in the Greek manufacturing sector improved in July, with the Purchasing Managers’ Index -PMI- rising to 50.5 points, surpassing the 50-point level signaling its return to growth course for the second time after August 2016, IHS Markit said on Tuesday.
Markit said this rise was the result mainly of a further increase in production, an increase in employment and a rise in purchasing activity. Inflow prices rose strongly pushing average sale prices higher, while enterprises remained optimistic over production trends in the next 12 months.
Manufacturing production rose for the second successive month, at the fastest rate since December 2015, leading to higher inventories for the first time since October 2010. Production increase was relative to an increase in employment for the third successive month, although the rate of increase was slower compared with June. Volume of new works was unchanged in July, after the first increase in 10 months recorded in June, leading to a new decline in pending work volume (pending work volume declined for the 109th successive month).
Despite unchanged new work levels, manufacturing companies raised their purchasing activity in July, ending a six-month decline period. Inventories fell further and inflow prices rose for the 16th successive month. Average delivery times continued rising in July although at the weakest rate in nine months. Manufacturing companies were more optimistic in July over production trends in the next 12 months.
The PMI is a composite index measuring business activity in the manufacturing sector. Readings below 50 indicate a shrinking sector while readings above 50 a growing sector.