Business conditions in Greece improve at fastest pace since June 2008
Staff Writer |
Business conditions in the Greek manufacturing sector continued to improve in the final month of 2017, and to the greatest extent for nine-and-a-half years.
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Growth was driven by further marked rises in new orders, in both domestic and foreign markets.
In response, firms expanded their purchasing activity and headcounts, which contributed to the joint-sharpest rise in output since August 2008.
Meanwhile, business confidence hit a five-and-ahalf year high.
On the price front, average selling prices fell to a greater degree than in November, despite a broadly unchanged rate of input price inflation.
The seasonally adjusted IHS Markit Greece Manufacturing Purchasing Managers’ Index (PMI ) – a composite indicator designed to measure the performance of the manufacturing economy – posted above the 50.0 no-change threshold in December.
Moreover, at 53.1, up from 52.2 in November, the index reading signalled the sharpest improvement in business conditions since June 2008.
The expansion also extends the current period of overall growth to seven months, by far the longest since 2008.
The consumer goods category maintained its position as the best performing sector over the month.
The sharpest rise in new orders in over nine-and-ahalf years underpinned overall growth, which itself was driven by strong client demand in both domestic and foreign markets.
Indeed, new export orders rose to the greatest extent since April 2008.
In response to higher new order intakes, firms took on additional workers for the eighth time in as many months during December.
In turn, this contributed to a fall in unfinished work, thereby continuing a trend that has been observed since July 2008.
Moreover, the rate of backlog depletion quickened from the previous month.
Firms also expanded their input buying over the latest survey period.
Indeed, the rate of expansion was the most marked in over ten years.
In spite of this, manufacturers reported a further fall in preproduction inventories.
That said, the rate of decline was the least marked in the current near ten-year period of decline.
Strong demand conditions combined with enhanced operating capacity led to a further rise in output during the month.
Indeed, following a similar trend to new orders, the rate of expansion was the jointfastest since August 2008.
Nevertheless, firms continued to deplete their stocks of finished goods.
Robust client demand failed to boost average selling prices.
Indeed, the rate of decline quickened from November.
This was despite a broadly unchanged round of input price inflation, suggesting a squeeze on gross margins. ■