ATHENS: Greek manufacturing expanded at a solid pace in March to hit a one-year high as a pick up in new business orders led firms to increase production and add workers, a survey showed on Monday.
Markit's Purchasing Managers' Index for manufacturing, which accounts for about 10 percent of the Greek economy, rose to 54.7 in March from 54.2 in February, extending the current sequence of growth to 22 months.
Readings above the 50 mark indicate activity expansion. The latest data marked the longest period of expansion since a growth cycle that ended in 2001.
Driving the sharp rise in production was a further increase in demand at home and from foreign clients.
"The Greek manufacturing sector continued to show signs of improvement as the PMI rose to the highest in a year," said Sian Jones, IHS Markit economist.
Manufacturers added workers to cope with higher new order volumes, with the pace of job creation quickening - good news for an economy struggling with an unemployment rate of 18 percent.
"There was also more positive news for the labour market as the rate of job creation accelerated to the fastest since data collection began in 1999 following robust domestic and foreign demand," he said.
Overall, buoyed by the growth in new business, firms remained upbeat on the year-ahead outlook and business confidence strengthened to an 11-month high, the survey showed.
On the price front, input cost inflation rose at the fastest pace in four months as a result of higher raw materials prices.
"Encouragingly, firms were able to raise their output charges for the second month running, despite ongoing reports of strong competition" Jones said. Detailed PMI data are only available under licence from IHS Markit and customers need to apply for a licence.
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