ECONOMY

Manufacturing contains its contraction

Manufacturing contains its contraction

The deterioration of conditions in manufacturing continued to slow down in August, when the monthly Purchasing Managers Index for Greece compiled by Markit stood at 49.4 points – with 50 points marking the line between expansion and contraction. This marks an improvement from the 48.6 points recorded two months ago.

The Markit report noted on Tuesday that although this figure is still much lower compared to the start of the year – before the onset of the Covid pandemic – output reduction was very small in August and in some markets it was just marginal, despite the very low demand levels.

As enterprises continued to resume their activities after temporary shutdowns due to the pandemic, they have increased the flow of hirings. Last month manufacturers recorded the first – albeit marginal – increase in the number of employees since February, in spite of continuing indications of excessive staff.

Meanwhile business expectations improved in August to reach a six-month high, the survey found. The improvement in confidence is attributed to hopes for obtaining new clients and for a stronger demand by customers over the course of next year.