Tuesday October 21, 2014 Search
Weather | Athens
24o 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)  
At loggerheads over role of the IMF
Hong Kong telecom group buys out Greek start-up
Local tourism could see more arrivals, investments next year
Troika exerts pressure using return date
Wage dispute hurts gov’t unity before troika return
Changes to the public sector wage structure are at the heart of a dispute within the coalition that has raised concerns about whether the government will be in a position to negotiate effect...
Most Britons want to see Parthenon Marbles back in Athens, poll shows
The majority of Britons think that their country should return the Parthenon Marbles to Greece, a new poll has found. According to the survey, which was conducted by the YouGov international...
Inside News
BASKETBALL
PAOK fans stop coach Markopoulos´s move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
Inside Sports
COMMENTARY
Stop moaning and get in the game
There are so many people who love spending their days talking about the crisis and proclaiming that they know exactly what needs to be done to solve the country’s problems. Some of them obvi...
EDITORIAL
Exorcising the ghosts
Developments last week held in store an uncomfortably realistic understanding of the risks engulfing the country. The massive sell-off in Greece’s stock and bond markets was a strong shock. ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. PAOK fans stop coach Markopoulos´s move to Olympiakos
2. At loggerheads over role of the IMF
3. Hong Kong telecom group buys out Greek start-up
4. Local tourism could see more arrivals, investments next year
5. Troika exerts pressure using return date
6. Wage dispute hurts gov’t unity before troika return
more news
Today
This Week
1. Greece must stick to reforms, says Schaeuble
2. Bakers encircle Thessaloniki's White Tower with giant 'koulouri'
3. Turkish vessel enters Cypriot Exclusive Economic Zone
4. European leaders pivot back to debt crisis after wake-up call
5. Hardouvelis does not see 'big surprises' in ECB stress tests
6. Stop moaning and get in the game
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Greece to contribute 1 mln towards Gaza reconstruction
3. Greece nearing bailout exit, says gov't spokesperson after IMF talks
4. Istanbul skyscraper casts shadow over Greece's banking ambitions
5. Coalition shooting itself in the foot
6. GPO poll gives SYRIZA clear lead over New Democracy
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.