ECONOMY

Sept. PMI at 29-month high

Greece’s manufacturing sector grew faster in September, with its expansion pace hitting a 29-month high, supported by growth in output, new orders and employment, a monthly survey of around 300 companies showed yesterday. The seasonally adjusted Purchasing Managers’ Index (PMI) rose to 54.2 from a revised 54.1 in August, data from NTC Research showed. «Greek manufacturing production rose for a thirty-fourth consecutive month in September. Despite easing from August’s 73 month high of 57.9 to 56.9, the seasonally adjusted Output Index remained well above the 50.0 no-change threshold to signal a robust rate of growth… Almost half of panellists reported an increase in output, which they attributed mainly to further expansion of incoming new orders,» said NTC Research. «Greece’s headline PMI figure remains firmly in expansionary territory, signalling an overall expansion in the manufacturing sector. Importantly, the forward-looking new orders component signals solid output growth in the following months,» said Eurobank’s Platon Monokroussos. «Prices paid posted a small rise relative to the previous month, reflecting increased input costs but we should expect the price index to drift lower over the next few months on the back of lower fuel costs,» he added. «The positive trend of manufacturing production is continuing in September, making it more possible for satisfactory positive growth in 2006 as a whole,» said Alpha Bank’s Dimitris Maroulis. «Manufacturing growth would have been higher without the continuing substantial fall in production in traditional sectors, such as textiles, clothing and footwear, which are facing competition from China.» (Reuters)