The latest PMI survey data signalled the most substantial decrease in production across the Greek manufacturing sector since the series began 21 years ago.
The escalation of the coronavirus disease outbreak across Europe led to the widespread cancellation or postponement of orders, with domestic and foreign demand slumping at unprecedented rates.
Subsequently, firms shed staff at the fastest pace in the series history as a lack of new business led to greater spare capacity.
Uncertainty and fears of a slow recovery weighed on business confidence which dropped to the lowest since July 2015.
On the price front, both suppliers and manufacturers lowered their charges in an effort to attract, and importantly, retain clients.
The seasonally adjusted IHS Markit Greece Manufacturing Purchasing Managers’ Index (PMI) posted 29.5 at the start of the second quarter, down notably from 42.5 in March.
The deterioration in operating conditions was the strongest since data collection began in May 1999, despite being buoyed slightly by a further extension in supplier delivery times (ordinarily a sign of improving manufacturing performance).
Driving the headline figure down to a new series low was the sharpest contraction in output for 21 years.
Global lockdowns following the escalation of the COVID-19 pandemic reportedly limited production capacity, whilst a stark turnaround in demand conditions reduced order book volumes.
The decrease in total sales was the quickest since data collection began in May 1999, with new export orders also declining markedly amid order cancellations and postponements across key export destinations.
In line with the substantial reduction in client demand, backlogs of work fell at the sharpest pace since the series began in November 2002.
Spare capacity and factory closures were reportedly key contributing factors behind an unprecedented drop in workforce numbers, a vast turnaround from job creation seen at the start of the year.
The outlook for output across the Greek manufacturing sector was pessimistic in April, as firms expect production to decline over the coming year.
Negative sentiment was attributed to fears of a slow recovery, longer lockdowns, and worries surrounding access to credit.
At the same time, firms sought to attract clients into making purchases by reducing their output charges at the sharpest pace since March 2009.
Suppliers also cut their prices, with cost burdens falling at the quickest rate for just over four years.
Manufacturers registered the fastest fall in input buying since July 2015 as demand for raw materials dwindled.
Despite a fall in purchasing activity, lead times lengthened markedly as tighter border controls and logistical issues caused by the virus outbreak led to greater delays. ■