ECONOMY

In Brief

Manufacturing on recovery path in May Greece’s manufacturing sector continued to recover in May, with the purchasing managers index (PMI) rising to 46.1 points in May from 40.9 in April, a monthly survey of manufacturers showed yesterday. Data indicated that business conditions in Greece’s manufacturing economy were stabilizing, with declines in output and new orders noticeably slower than in April. May’s reading was the highest for the PMI index since last October, although data still showed a strong monthly contraction. The 50-point mark separates contraction from growth. The survey showed that production levels at Greek manufacturers fell for the eighth straight month in May, with the rate of decline easing sharply to a more modest pace. Incoming new business fell moderately in May, the drop being the mildest in the current contractionary period. (Reuters) GEK Terna to build Kifissia parking lot GEK Terna SA, a Greek company with interests in building and energy, will construct and manage a parking lot for the municipality of Kifissia. The project should be complete in 30 months and cost around 9 million euros ($12.8 million), according to an Athens bourse filing yesterday. The company will run the garage, which will include five underground levels and hold up to 624 cars, for 23 years. (Bloomberg) Profits rise J&P Avax SA, Greece’s second-biggest builder, posted a 38 percent advance in first-quarter net profit to 9.5 million euros, according to an e-mailed statement from the company. Sales climbed to 229.5 million euros from 199.2 million euros, the statement said. (Bloomberg) Acquisition CEZ AS, the Czech Republic’s largest power producer, said it received 76 percent of Albanian distribution company OSSH yesterday. CEZ said in a filing to the Warsaw Stock Exchange that it paid 102 million euros ($145 million) for the stake after being selected the winning bidder in October. (Bloomberg) Surplus falls Bulgaria ran a budget surplus of 675.5 million levs ($483.2 million) at the end of April, up 31.3 percent from a month earlier but down sharply on an annual basis due to increased spending, data showed yesterday. The surplus stood at 2.7 billion levs at end-April last year. Budget spending rose 21.7 percent to 8.4 billion levs at the end of April from a year ago due to an economic crisis which cut revenues by 5.2 percent on an annual basis to 9.1 billion levs, Finance Ministry data showed. The central bank and the International Monetary Fund, which predict Bulgaria’s economy will contract 2 percent this year, have urged the government to curb spending to avoid slipping into deficit in 2009 for the first time in seven years. (Reuters) Energy approval Public Power Corp, Greece’s biggest electricity company, said it received approval from the country’s competition watchdog for plans to team up with Halyvourgiki SA to build two power plants. (Bloomberg)