PPMMII ffaal­l­llss aaggaaiinn iinn JJu­ul­lyy

Financial Mirror (Cyprus) - - FRONT PAGE -

The man­u­fac­tur­ing PMI headed south for the sec­ond suc­ces­sive month in June, eas­ing by 0.7 points to 48.7 in July from 49.4 in June, ac­cord­ing to Markit.

This was the low­est read­ing since Oc­to­ber 2013, point­ing to a fur­ther de­te­ri­o­ra­tion in the over­all busi­ness con­di­tions in the man­u­fac­tur­ing sec­tor.

The re­newed con­trac­tion re­flects a de­crease in the out­put lev­els, due to a fur­ther re­duc­tion in the over­all new or­ders, although new ex­port or­ders rose mod­estly. In ad­di­tion, man­u­fac­tur­ers cut both em­ploy­ment lev­els and quan­ti­ties of pur­chases, while cost pres­sures were sub­dued.

Pro­duc­tion in July de­creased slightly partly off­set­ting the mod­est in­crease posted in June. In ad­di­tion, it ended a se­ries of con­tin­u­ous ex­pan­sion since Novem­ber 2013. Although con­sumer goods pro­duc­ers showed a rise in out­put lev­els, this was negated by weak­ness in the other sec­tors - par­tic­u­larly in­vest­ment goods.

The rate of drop in July new or­ders was faster than in June, mainly re­flect­ing weaker de­mand. Nev­er­the­less, new ex­port or­ders in­creased for the third con­sec­u­tive month at a rate which was the most marked over the past three years, yet only mod­est over­all.

Lower de­mand led to a re­duc­tion in staffing num­bers for the sec­ond straight month, yet at a slower to June rate. Buy­ing lev­els were also down point­ing to the first drop over the past three months.

“The Greek man­u­fac­tur­ing sec­tor started the sec­ond half of the year in re­verse gear,” ac­cord­ing to Markit an­a­lysts.

“A third straight monthly rise in new ex­port or­ders of­fers some hope that the up­turn can be re­vived. It will un­doubt­edly help if cost pres­sures re­main low as any ap­pre­cia­ble rise in out­put prices will only act to erode Greek man­u­fac­tur­ers’ com­pet­i­tive­ness,” Markit added.

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