Greek factory output falls again in July

Greek factory output falls again in July

Greece’s factory output fell again in July after a brief period of growth in June, according to data published on Monday.

The Purchasing Managers’ Index (PMI) issued by Markit each month showed that in July Greece dipped back below the 50-point mark that separates growth from contraction. The country’s PMI reached just 48.7 points last month compared to 50.4 in June, although this was still far better than the showing in July 2015, when the closure of Greek banks along with the imposition of capital controls led to the worst monthly figures Markit had seen since it began compiling its surveys.

Markit attributed the decline to “deterioration in operating conditions in the sector.” Goods production declined, domestic demand waned and new orders fell for the 23rd consecutive month. There was also another increase in lead times, with most of those surveyed by Markit blaming this on the recent port strikes.

“With unfinished business still declining and stock levels being reduced further, the likelihood of growth occurring in the second half of 2016 seems slim,” said Markit economist Samuel Agass.

The only positive news in Markit’s release was that July saw the biggest increase in payroll numbers for nine years.

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