Manufacturing PMI, known as PMI index, mainly as a result of a significant decrease in demand and new orders in both the domestic and international markets. The figures are also worrying, showing not only a reduction in new hiring in the manufacturing sector, but also a significant number of layoffs. In particular, the reduction in the number of employees is the first recorded since December 2020 – a period when Greece was in lockdown – and was associated with a large number of layoffs. The only encouraging element, which of course remains to be seen if it will continue, is that the rate of growth in the cost of some commodities has slowed down.

Thus, according to the S&P Global survey, the PMI index in August amounted to 48.8 points against 49.1 points in July, remaining below the 50-point mark for the second month in a row, which indicates a recession. This comes as output fell sharply in August at the fastest pace since the end of 2020 due to lower new order inflows and weak consumer demand. At the same time, new orders received by Greek manufacturers of goods fell sharply, due to a surge in prices and higher energy costs.

The situation with orders from abroad is also unfavorable. The rate of decline in new export orders has accelerated, while new sales to overseas customers have fallen at the sharpest pace since January 2021.

PMI fell again to 48.8 in August.

Shrinking production needs forced companies to cut input purchases again in August. Purchasing activity has been declining for the fourth month in a row and at a stable pace. Weak customer demand also led to further inventory drawdowns as stocks of both inventory and finished goods declined.

On the downside, however, manufacturing costs rose at the slowest pace since November 2020 as growth slowed for the fifth month in a row. Although energy and transport costs have not increased, falling prices for some raw materials have limited the increase in production costs.

On another positive note, despite the decline in new orders, manufacturing companies are optimistic about a recovery in demand next year.