Drop in PMI on re­duc­tion in or­ders

Kathimerini English - - Focus - BY CHRYSSA LIAGGOU & DIM­I­TRA MANIFAVA

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.

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