Manufacturers see fast drop

Manufacturers see fast drop

Greek manufacturing output posted its fastest decline in the last couple of years last month – i.e. even before the announcement of this Sunday’s referendum – according to Markit’s Purchasing Managers’ Index (PMI). Orders were drastically reduced, while delivery times grew further, probably due to shortages in raw materials.

The index dropped to 46.9 points in June, from 48 points in May, hitting the second-lowest reading of the last two years. It has stayed below the 50-point mark for 10 consecutive months.

Markit noted that the accelerated contraction of goods production in June made it the worst quarter for Greek manufacturing in the last couple of years.

During the negotiations between Athens and its creditors for an agreement, demand was particularly low, resulting in a faster drop in new orders, both from the domestic market and foreign clients.

Delivery times have also worsened considerably, with the deterioration having the fastest rate recorded since October 2010, according to the Markit report.

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