FX.co ★ Greece Manufacturing Growth Remains Strong

The manufacturing industry in Greece showed a robust upward trajectory in April, as confirmed by preliminary survey results from S&P Global. This growth was driven by a consistent increase in both production rates and new order requests.

The Purchasing Managers' Index (PMI) for the manufacturing sector recorded a slight drop to 55.2 in April from 56.9 in March. Regardless of this decrease, the index reading above 50 indicates expansion within the sector. Despite being the lowest in the last three months, this score signifies substantial progress in the Greek manufacturing industry.

The growth in output remained strong in April even though it eased from the rates seen in the previous month. The main growth driver was the consistent rise in sales, particularly due to the increased demand from foreign clients. The higher sales recorded were mainly fueled by interests from Europe, Asia, and the Middle East.

Industry employment and purchasing activity also benefited from the steady rise in new order requests, leading to job growth reaching its highest level in over two years. However, the sector faced recurring supply chain issues in April. This was particularly due to the rerouting of deliveries normally processed via the Suez Canal and the decline in vendor performance for the fifth consecutive month.

Consequently, the costs of raw materials and fuel surged at a higher pace, causing the rate of input price inflation to rise at the fastest pace since January 2023. Subsequently, selling prices also increased, posting the second-highest increase in over a year.

Despite these challenges, manufacturers remain positive about their output expectations in the upcoming year. This confidence is mainly due to their prospective investments in new product ranges and an anticipated increase in client engagement.