Greece: Manufacturing PMI falls in May
The S&P Global Greece Manufacturing Purchasing Managers’ Index (PMI) fell to 54.9 in May from 55.2 in April. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in manufacturing-sector operating conditions compared to the previous month.
In May, growth in both new orders and output eased to four-month lows. However, growth of both remained healthy amid sustained client demand, and employment levels continued to rise. Meanwhile, supply-chain disruptions due to issues with routes through the Red Sea and domestic traffic problems led to longer lead times for input deliveries. Firms sought to mitigate these challenges by hiking their purchasing activity and building up safety stocks.
Regarding prices, input cost inflation accelerated due to rising prices for raw materials. Despite this, the pace of increase in output charges moderated, suggesting firms were cautious in passing these higher costs onto customers. Lastly, business confidence among Greek manufacturers improved to the strongest level in three months, supported by robust client demand and the continued expansion of workforces.