(Reuters) -Greece's manufacturing sector continued its expansion in May, driven by a solid rise in new orders and accelerated output growth, despite challenges from weak export demand, a survey from S
Greek Manufacturing Sector Grows as Domestic Demand Increases
(Reuters) -Greece's manufacturing sector continued its expansion in May, driven by a solid rise in new orders and accelerated output growth, despite challenges from weak export demand, a survey from S&P Global showed on Monday.
The S&P Global Greece Manufacturing Purchasing Managers' Index (PMI) remained unchanged at 53.2 in May. A PMI above 50 indicates growth in activity, while below 50 signals contraction. The sector has been expanding since February 2023.
New orders increased for the seventh consecutive month, albeit at the slowest pace in three months, as domestic demand remained robust. However, new export orders fell for the first time in seven months, attributed to U.S. tariff impacts and weak European market conditions.
"Greek manufacturing firms signalled a further solid improvement in May. Output growth quickened as domestic demand remained buoyant," said Siân Jones, Principal Economist at S&P Global Market Intelligence. "Encouragingly, business confidence strengthened, and firms were spurred on to expand their workforce numbers."
Employment grew at the fastest rate since January 2022, reflecting increased workloads. This led to a reduction in backlogs, with firms working through outstanding business more efficiently.
Cost pressures eased, with the slowest rise in input prices since February 2024. Despite this, manufacturers continued to increase selling prices, albeit at a reduced pace compared to previous months.
Business optimism improved, supported by plans for investment in new products and machinery, and efforts to acquire new customers.
Greek manufacturers faced ongoing supply chain challenges, with input delivery delays persisting. Nonetheless, increased purchasing activity was noted, driven by greater production needs, the survey said.
(Reporting by Reuters)
