ATHENS: Greek factory activity grew at a slower pace for a second consecutive month in April, but business confidence hit a record high despite slowing growth in production and new orders, a survey showed on Wednesday.
Markit's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about 10 percent of the economy, fell to 52.9 from 55 in March. Readings above 50 denote expansions in activity; below 50, a contraction.
Driving the expansion was a rise in new orders at home and from abroad for the ninth straight month, but to a weaker extent, which led to smaller rises in output and employment.
Business confidence, supported by expectations of more robust financial conditions and strong export demand, rose from March, hitting another record.
"Following a stellar first quarter, Greek manufacturing sector growth moderated in April to a level more in line with that seen for much of the second half of last year," IHS Markit Economist Alex Gill said.
"The slowdown was broad-based in nature with output, new orders and input buying all expanding at softer rates."
"The more forward looking indicators continued to highlight some positive signs, with business confidence and employment growth the sharpest and third-sharpest on record respectively, perhaps suggesting firms expect growth to continue in the coming months, albeit to a weaker extent than in Q1," Gill said.
Greece's debt crisis in late 2009 led to a long recession and multiple bailouts, which Athens hope to exit in August, when its current, third rescue programme expires.
The country's jobless rate, at 20.6 percent in January, remains the highest in the euro zone.
Greek manufacturers continued to take on new workers in April, but the pace of job creation eased slightly from a record high in March.
Input price inflation eased for the third time in as many months but remained marked as raw-material prices rose.
- Detailed PMI data are only available under licence from IHS Markit and customers need to apply for a licence.
Comments
Comments are closed for this article.