Export orders are disappointing
According to the Purchasing Managers? Index (PMI) compiled by the Markit research firm, Greek exports continued to decline dramatically in May, as the country found itself mired in political instability.
Notably, the monthly drop in new order volume for markets abroad has been the biggest seen over the last couple of years. Entrepreneurs attribute this to the deterioration of operating conditions for their main trading partners.
In total, new orders posted a new eight-month low, while output registered a new 10-month low as a result of the recession and the continued political uncertainty.
The main PMI index may have risen to an eight-month high of 43.1 points in May, up from 40.7 points in April, but it remained below the 50-point threshold that separates growth from contraction.
The absence of new orders has led to a further contraction in the number of jobs in the sector. Firms responding to the Markit survey said that although they had reduced working hours, the rapid decline in output and the likelihood of weak demand have left them with no other option but to dismiss employees.