The latest data from S&P Global’s Purchasing Managers’ Index (PMI) reveals a slight slowdown in Greek factory activity for the month of April. While manufacturing growth expanded steadily, both output and new orders experienced softened growth, attributed in part to supply chain delays.
The PMI for manufacturing, which constitutes approximately 10% of Greece‘s economy, decreased to 55.2 in April from 56.9 in March. Despite this decline, it marks the 14th consecutive month of activity growth, with Greece surpassing many other European economies in performance.
Ongoing disruptions in supply routes, particularly through the Red Sea, have resulted in delayed deliveries and increased import costs. Consequently, cost inflation surged at the fastest rate in over a year, prompting firms to adjust output prices accordingly.
Although production growth decelerated, it remained robust, fuelled by strong demand from foreign clients in Europe, Asia, and the Middle East. Additionally, the pace of job creation reached its highest level in over two years, with firms employing more part-time workers to meet heightened production needs.
Looking ahead, expectations for output in the coming year have improved, driven by increased investment in new product ranges and marketing initiatives. Sian Jones, an economist at S&P Global Market Intelligence, forecasts a 3.4% year-on-year rise in industrial production for 2024.