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News Release
Purchasing Managers’ Index®
MARKET SENSITIVE INFORMATION
EMBARGOED UNTIL: 11:00 (Athens) / 08:00 (UTC) April 1st 2016
Markit Greece Manufacturing PMI
®
Downturn in Greece’s manufacturing sector continues during March
Key points:

Headline PMI remains in contraction territory

Both incoming new orders and production
levels contract further

Job creation registered, despite decline in
backlogs of work
Volumes of production amongst manufacturing
businesses in Greece edged closer to stabilisation
during March, yet remained in contraction territory.
Moreover, output levels have declined in each of
the past three months. With lower volumes of
production, firms saw a reduction in their levels of
finished goods stock.
Driving the latest contraction in output was a broadbased decline in demand, with weaknesses seen in
both the domestic and external markets. Total new
work
have declined in every month since
September 2014, while new business from abroad
have contracted in each of the past 17 months.
Historical overview:
Greek goods producers continued to work through
their outstanding business during March, as levels
of work-in-hand fell further. The rate at which
backlogs of work decreased was, unchanged from
February, and solid overall.
Meanwhile, a rise in the number of employees
working in Greece’s manufacturing sector was
recorded in March. The latest increase was the third
registered in four months, although the rate of job
creation was relatively weak.
Summary:
The downturn in the manufacturing sector of
Greece continued during March, driven by declines
in both output and incoming new orders.
Companies continued to reduce their stock levels,
linking this to a lack of demand in the market.
Nonetheless, workforce numbers increased slightly.
Price pressures, remained on the downside as both
input costs and output charges fell.
Greek goods producers saw a further deterioration
in operating conditions during March, highlighted by
the
seasonally
adjusted
Markit
Greece
Manufacturing Purchasing Managers’ Index®
(PMI®) – a composite indicator designed to
measure the performance of the manufacturing
economy – registering 49.0. Up from February’s
figure of 48.4, the latest reading pointed to a softer
downturn in the sector.
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Input buying amongst Greek goods producers
decreased for the nineteenth successive month
during March. This was reflected in a further
reduction in pre-production inventories, the ninetysecond in as many months. Moreover, the rate at
which input stock deteriorated was sharp and
stronger than the long-run series average.
Price pressures in the manufacturing sector of
Greece remained on the downside in March. Firms
that lowered their output charges linked this to a
drop in input prices, most notably for oil. Average
cost burdens declined for the third month running.
Finally, average lead times lengthened for the
sixteenth successive month during March.
© Markit 2016
Comment:
Samuel Agass, Economist at Markit which compiles
®
the Greece Manufacturing PMI survey, said:
“Survey data for March signals a further
deterioration of operating conditions in the
manufacturing sector of Greece. However, the
downturn has eased considerably from the lows of
last summer, with the average PMI score for Q1
2016, climbing to the highest since Q4 2014. Still
below the crucial 50.0 no-change mark, this points
to a contraction in Greece’s GDP in the first three
months of 2016, nonetheless.
“As has been the case since September 2014,
demand for Greek goods continues to wane.
Backlogs of work were reduced further and output,
which looks to be edging closer to stabilising, still
remains in contraction territory. One encouraging
note from the latest results is an increase in
employee numbers in Greece’s factories, even
though this was only slight.”
-EndsFor further information, please contact:
Markit
Samuel Agass, Economist
Telephone +44 1491 461 006
Email [email protected]
Joanna Vickers, Corporate Communications
Telephone +44 207 260 2234
Email [email protected]
Notes to Editors:
The Greece Manufacturing PMI® (Purchasing Managers’ Index®) is produced by Markit Economics. The report features original survey data
collected from a representative panel of over 300 companies based in the Greek manufacturing sector. The panel is stratified by GDP and
company workforce size.
Survey responses reflect the change, if any, in the current month compared to the previous month based on data collected mid-month. For
each of the indicators the ‘Report' shows the percentage reporting each response, the net difference between the number of higher/better
responses and lower/worse responses, and the ‘diffusion' index. This index is the sum of the positive responses plus a half of those
responding ‘the same'.
Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of
change. An index reading above 50 indicates an overall increase in that variable, below 50 an overall decrease.
Markit do not revise underlying survey data after first publication, but seasonal adjustment factors may be revised from time to time as
appropriate which will affect the seasonally adjusted data series. Historical data relating to the underlying (unadjusted) numbers, first
published seasonally adjusted series and subsequently revised data are available to subscribers from Markit. Please contact
[email protected].
The Manufacturing Purchasing Managers' Index (PMI) is a composite index based on five of the individual indexes with the following
weights: New Orders - 0.3, Output - 0.25, Employment - 0.2, Suppliers' Delivery Times - 0.15, Stock of Items Purchased - 0.1, with the
Delivery Times Index inverted so that it moves in a comparable direction.
The Purchasing Managers’ Index (PMI) survey methodology has developed an outstanding reputation for providing the most up-to-date
possible indication of what is really happening in the private sector economy by tracking variables such as sales, employment, inventories
and prices. The indices are widely used by businesses, governments and economic analysts in financial institutions to help better
understand business conditions and guide corporate and investment strategy. In particular, central banks in many countries (including the
European Central Bank) use the data to help make interest rate decisions. PMI surveys are the first indicators of economic conditions
published each month and are therefore available well ahead of comparable data produced by government bodies.
About Markit
Markit is a leading global diversified provider of financial information services. We provide products that enhance transparency, reduce risk
and improve operational efficiency. Our customers include banks, hedge funds, asset managers, central banks, regulators, auditors, fund
administrators and insurance companies. Founded in 2003, we employ approximately 4,000 people in 11 countries. Markit shares are listed
on Nasdaq under the symbol MRKT. For more information, please see www.markit.com.
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© Markit 2016
About PMI
Purchasing Managers’ Index® (PMI®) surveys are now available over 30 countries and also for key regions including the Eurozone. They are
the most closely-watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their
ability to provide up-to-date, accurate and often unique monthly indicators of economic trends. To learn more go to
www.markit.com/economics.
The intellectual property rights to the Greece Manufacturing PMI® provided herein are owned by or licensed to Markit. Any unauthorised use,
including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit’s prior consent.
Markit shall not have any liability, duty or obligation for or relating to the content or information (“data”) contained herein, any errors, inaccuracies,
omissions or delays in the data, or for any actions taken in reliance thereon. In no event shall Markit be liable for any special, incidental, or
®
®
consequential damages, arising out of the use of the data. Purchasing Managers' Index and PMI are either registered trade marks of Markit
Economics Limited or licensed to Markit Economics Limited. Markit is a registered trade mark of Markit Group Limited.
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© Markit 2016