ATHENS — Greece's Purchasing Managers' Index (PMI) rose to 46.9 points in December, from 42.3 in November, showing a stable, but weaker, deterioration of operating conditions prevailing in the Greek manufacturing sector, IHS Markit said in a report on Monday.
Manufacturing production continued falling in December as weak demand conditions and a lockdown had negative consequences on enterprises, with the contraction rate the second fastest since May 2020. At the same time, customer demand fell further at the second fastest rate in seven months, while new export orders fell significantly. The report said that turbulence in the supply chain heightened in December because of extensive restrictive measures taken throughout Europe. Shortages on the part of suppliers was another significant factor, which led to a further deterioration of suppliers' performance in the Greek manufacturing sector. Delivery times were extended to the highest level since April, while cost burden significant rose at the fastest rate since March 2011. Manufacturing companies continued lowering their outflow prices, while a decline in job positions continued although at slightly slower pace. The volume of pending works fell significantly. However, the business community recorded an increase in the levels of optimism at the end of 2020 based on hopes that a vaccine will help combat the coronavirus pandemic.
The PMI is a composite index measuring business activity in the manufacturing sector. Readings above 50 indicate a growing sector while readings below 50 a shrinking sector.