FFaaccttoorryy oouuttppuutt sshhrriinnkkss,, eexxppoorrtt oorrddeerrss ppiicckk uupp
Factory activity shrank again last month as a pick-up in export orders was not enough to offset declines in output and employment.
Markit’s purchasing managers’ index (PMI) for manufacturing, which makes up about 10% of the Greek economy, rose to 48.8 in October from 48.4 in September, but remained stuck below the 50 mark denoting growth for the fifth month in a row.
“The PMI registered in contraction territory in October, in a further sign that the recovery in Greece’s goods-producing economy is faltering after a relatively positive start to 2014,” said Markit economist Phil Smith. Manufacturing output and new orders fell in October for the third time in the last four months although their rates of decline slowed from September, helped by a renewed expansion in export sales. Depletion of backlogs led firms to lower their payroll numbers but also at a slower rate than in September, with job shedding in the sector continuing for the fifth straight month, Markit said. Manufacturers continued to reduce selling prices to counter weak demand despite a slight uptick in input costs, as has been the case on a monthly basis since March 2011, the report said.