Greece’s manufacturing sector shown solid expansion in June, fueled by a notable increase in new orders, as reported by a survey from S&P Global. The S&P Global Greece Manufacturing Purchasing Managers’ Index (PMI) registered at 53.1 for June, a slight decrease from May’s 53.2 but still reflecting strong growth. A PMI score above 50.0 indicates expansion, while a score below signifies contraction. The increase in new orders was predominantly driven by domestic demand, as new export orders declined more sharply, influenced by global economic uncertainties and tariffs affecting U.S. demand.
According to Siân Jones, principal economist at S&P Global Market Intelligence, Greek manufacturers experienced a sustained expansion in the sector throughout June. However, inflationary pressures escalated, with input costs rising significantly due to increasing prices for energy and raw materials. In response to these pressures, companies raised their selling prices at the fastest rates since March in an attempt to transfer some of the cost burden to customers. Employment growth showed signs of slowing, reaching its weakest level since January, while business confidence dipped to its lowest point since last October.
Nevertheless, this marked the seventh consecutive month in which companies increased their workforce, driven by the need to meet output requirements. Manufacturers increased their purchases of inputs in anticipation of future sales growth, resulting in a rise in inventories for the first time in three months. Conversely, stocks of finished goods decreased as firms relied on their inventories to satisfy current demand. While there is a prevailing optimism about output growth for the next year, geo-political and economic uncertainties could impact future expectations.
Nonetheless, industrial production is projected to rise by 3% in 2025, according to Jones.