Greek manufacturing growth hits five-month high in August, PMI shows

Greece's manufacturing sector experienced its strongest growth in five months in August, driven by a surge in domestic demand and increased production, a survey reported on Monday.

The S&P Global Greece Manufacturing Purchasing Managers' Index (PMI) rose to 54.5 in August from 51.7 in July, indicating a robust improvement in the sector's health. A PMI reading above 50 suggests growth, while below 50 indicates contraction.

New orders grew at the fastest pace since March 2024, although this was largely due to domestic demand as export orders continued to decline for the fourth consecutive month. The contraction in export sales was the steepest since December 2022, the survey said.

Employment and purchasing activity also saw accelerated growth, with workforce numbers rising at the fastest rate in three months. However, supply chain challenges persisted, with the longest lead times for inputs since January, attributed to transportation shortages and customs delays.

Input price inflation eased to its lowest in 18 months, yet manufacturers increased their selling prices at the fastest rate since March, capitalising on favourable demand conditions.

"August PMI data signalled a stronger performance across the Greek manufacturing sector as improved client demand supported faster expansions in production and new orders," said Sian Jones, Principal Economist at S&P Global Market Intelligence.

Despite the challenges, Greek manufacturers expressed optimism for the future, buoyed by expectations of increased activity in the construction sector and stronger demand. However, the level of positive sentiment was the second-lowest in a year.