ECONOMY

PMI records drop in orders but rise in jobs

New activity in Greek manufacturing last month posted the sharpest decline since July 2013, according to the Markit research firm’s Purchasing Managers Index (PMI). The main reason for that is the negative impact of the ongoing political uncertainty on domestic and international demand.

However, the increase in employment and the slower stock reduction kept the PMI index at almost the same level in February (48.4 points) as in January (48.3), in spite of the rapid drop in output and new orders.

Clients from both the domestic and the international markets have been reluctant to commit to new orders given the uncertainty, and producer prices are going down, putting pressure on profits, but manufacturers reported a net increase in employment levels, with the highest job creation rate seen in recent years.