ECONOMY

Greek PMI in manufacturing edged up to 45.4 in June

Greece’s Purchasing Managers’ Index (PMI) in manufacturing rose slightly to 45.4 in June, Markit reported on Monday.

The PMI had been at 45.3 a month earlier. “The headline index posted its highest quarterly average (45.2) since Q2 2011, but nevertheless remained well below the 50.0 threshold that separates growth from contraction,” said Markit.

The level of new work placed at manufacturers in Greece decreased at the slowest rate for nearly two years in June, with the pace of decline having eased for the third month running. A contrasting trend was recorded for new export orders, which contracted at a sharp and accelerated rate – the fastest since February, added the information services company.

“The headline PMI inched up to its highest mark in two years in June, amid slightly slower declines in both new orders and employment at manufacturers,” said Markit’s Phil Smith, who wrote the report on Greece.

“Production levels fell to a greater extent than in May, however, and a sharp and accelerated decrease in backlogs of work suggested that the trend in new orders will need to improve again for there to be upward pressure on output. Indeed, due to weakening demand, a number of firms slowed production in order to lower their finished goods stocks.”

Manufacturing output in the eurozone improved in June to a 16-month high of 48.8, up from the flash estimate of 48.7 and May’s reading of 48.3.