Greek manufacturing activity accelerates in February, PMI shows

Greek factory activity expanded in February at the fastest rate in two years as stronger domestic and foreign demand led to a sharp uptick in new orders and employment, a survey showed on Friday.

S&P Global's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about 10% of Greece's economy, rose to 55.7 in February from 54.7 in January. It was the 13th month in a row that the reading was above the 50 level which marks growth in activity, as Greece has outperformed many other European economies.

"Greek manufacturers have gone from strength to strength in the opening months of 2024, as output, new orders, employment and purchasing increased amid more robust demand conditions," said Sian Jones, an economist at S&P Global Market Intelligence.

New orders grew at the sharpest pace since December 2021 and, along with previous investment by Greek manufacturers to improve operations, led to higher output.

In response to higher production, manufacturers hired more staff, with employment growing at the fastest pace since July.

However, supply challenges remained, with firms raising their prices at the fastest pace in a year, as input charges increased further on raw material shortages and shipping delays.

Latest PMI data suggests that consumer inflation could accelerate in the coming months, following a period of easing, Jones said.

Although manufacturers' business confidence slipped from January's high, it was the second strongest in just over two years, on planned investment in new machinery, an anticipated rise in new orders and the upcoming start of large projects.