Output growth sharpest in over nine years in Greece
Staff Writer |
Business conditions in the Greek manufacturing sector continued to improve at the end of the third quarter, building on growth in each of the preceding three months.
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Driving the expansion was another robust increase in domestic demand, which encouraged firms to further enhance their productive capacity by taking on new workers and raising their purchasing activity.
In turn, this led to a marked expansion in output and an improvement in business confidence.
Meanwhile, charge inflation weakened despite a sharper increase in average cost burdens.
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 September to signal a further improvement in Greek manufacturing sector conditions.
Moreover, at 52.8, up from 52.2 in August, the latest figure highlighted the fourth consecutive improvement and the sharpest since June 2008.
Underpinning the expansion was another marked rise in new orders, the sharpest in over three-anda-half years.
Data suggested that the increase in new business was centred on domestic markets, with new export orders declining in September, albeit only fractionally.
Buoyed by robust client demand, Greek manufacturers raised their output for the fourth consecutive month in September.
Moreover, the rate of growth was the most marked in over nine years.
The increase was driven by consumer and capital goods-producers, while a decline was reported by manufacturers of intermediate goods.
In spite of rising production, stocks of finished goods fell for the second successive month as firms used existing inventories to fulfil new orders.
Faced with higher production requirements, Greek manufacturers took on additional workers for the fifth consecutive month in September, albeit at a slightly softer pace than in August.
In turn, this contributed to a further depletion of unfinished work.
Firms raised their purchasing activity for the third successive month in September.
Nonetheless, preproduction inventories continued to fall.
Average lead times lengthened at the quickest pace since May as higher client demand put pressure on supply chains.
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