Thursday March 5, 2015 Search
Weather | Athens
20o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Manufacturing still burdened by cash shortage

By Dimitra Manifava

Greek industry has been so cash-starved that it is unable to fully capitalize on the increase in domestic and international demand and the gradual return of credibility in the Greek economy. In the absence of cash reserves, manufacturing companies are unable to purchase raw materials, hire additional employees or deliver orders in a timely manner.

These are the features recorded in a Purchasing Managers Index (PMI) survey conducted by Markit. The survey found that after the recovery registered in the first couple of months of 2014, the index returned below the growth threshold of 50 points in March to 49.7 points, compared with 51.3 points in February.

This development is characterized as “rather disappointing” by Markit economist Phil Smith, author of the Greek PMI report. He nevertheless added that “the main indices that relate to output and new orders have remained on a growth level – albeit below the February highs – showing that the manufacturing sector has had a positive contribution to the country’s gross domestic product in the first quarter of the year.”

Smith added that the March survey again highlighted the degree to which the shortage of liquidity and cash reserves has been hampering the operation of enterprises in general, so that not only job creation is affected but also the markets, stocks and deliveries. He concluded by noting that “the recovery of the manufacturing sector requires progress on this front.”

The Markit analysis showed that March saw a further increase in output and new orders although the growth rate eased, while there was a decline in orders destined for markets outside Greece. A slide was also recorded in employment levels, which some entrepreneurs attribute to the lack of available cash.

Due to the increased demand in recent months, stocks of ready products have shrunk at the fastest rate recorded in the last two and a half years.

Another obstacle to Greek manufacturing securing satisfactory liquidity is that it is forced to sell at particularly low prices in order to retain competitiveness. Factory prices dropped again in March, as has been the case every month since March 2011, albeit at the slowest pace since the start of this year, according to the Markit survey’s findings.

ekathimerini.com , Tuesday April 1, 2014 (23:16)  
Draghi ties ECB’s Greek funding to bailout compliance [Update]
Cyprus wins ECB chief praise on road to renewed growth
ECB says willing to restore financing for Greek banks once deal is reached
Court blocks sale of luxury Astir seaside resort
Venizelos won´t be called to give evidence in Papaconstantinou trial
Former Finance Minister Evangelos Venizelos will not give evidence at the trial of his predecessor Giorgos Papaconstantinou, it was decided on Thursday. Papaconstantinou is being tried in a ...
Fugitive spotted and caught near Corinth
One of three men who escaped from a police holding cell in Corinth, west of Athens, on February 27 was recaptured on Thursday. Police said that a member of the DIAS motorcycle-riding squad s...
Inside News
SOCCER
Greece need to attack more, new coach Markarian says
Greece coach Sergio Markarian said Thursday he wanted Greece to play more attacking football against Hungary in a Euro 2016 qualifier on March 29 as his side strive to move off the bottom po...
SOCCER
Super League restarts, but behind closed doors
Deputy Minister for Sports Stavros Kontonis announced on Wednesday the resumption of the Super League this weekend after it was suspended last week following crowd trouble at the Athens derb...
Inside Sports
COMMENTARY
Greek-Turkish relations
There are other issues beyond those focusing on the economy that the government, formerly of the “Indignants” and currently adapting – willingly or unwillingly – to eurozone realities, is fa...
EDITORIAL
Government policy
The issue of irregular immigration is taking on serious dimensions on an international level, while in Greece it is bordering on crisis levels. The government’s duty is to handle the issue w...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Venizelos won´t be called to give evidence in Papaconstantinou trial
2. Fugitive spotted and caught near Corinth
3. Suspected Xeros helpers detained after refusing to answer questions
4. Missing persons committee apologizes for remains mix-up
5. Draghi ties ECB’s Greek funding to bailout compliance [Update]
6. Greece need to attack more, new coach Markarian says
more news
Today
This Week
1. Greek-Turkish relations
2. Greece struggles to make debt math work amid bailout standoff
3. Greece seeks to plug its 'Bermuda Triangle' of lost taxes
4. Greece has backup plan if March bailout cash fails to arrive, says Varoufakis
5. Draghi details sought as ECB's QE plan poised to be fleshed out
6. Government policy
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. A fierce battle looms
3. SYRIZA feeling the pain
4. The Greek tax drama
5. The unlikely winners of Greece's surrender on euro
6. Varoufakis to make six reform proposals at Monday's Eurogroup
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.