Drop in PMI on reduction in orders
Manufacturing sector jobs are unsafe as despite their increase in October, the indications according to the size of orders, cost of inflows and price of outflows are not encouraging at all.
This is evident in Greece’s Purchasing Managers Index (PMI), which in October recorded a fivemonth low of 48.6 points against 49.2 points in September, according to Markit researchers.
The industry is particularly concerned by last month’s further decline in new orders from both the domestic and international mar- kets. The paradox is that manufacturing firms boosted staff in October, although according to Markit this is a trend that will be very hard to sustain until the end of the year.
The picture is the same in the monthly survey of the Foundation for Economic and Industrial Research (IOBE). The manufacturing sector is showing positive prospects for output in the coming months, but there is also an increase in negative expectations for orders and demand in the short-term future. The marginal increase in the industrial index and the improvement in consumer confidence led to a rise in the economic sentiment index from 91.4 points in September to 93.8 points in October.
At least 500,000 buildings across Greece are believed to be empty, a figure which is certain to slow the return of the local property market to normality until after the country’s economy has recovered. These empty buildings include stores and houses unsold, abandoned and without tenants.
Markit reported a decline in the Purchasing Managers Index to a five-month low in October.