Manufacturing activity in Greece
In July 2017, the manufacturing PMI (purchasing managers’ index) in Greece (GREK) remained steady. Operating conditions improved marginally, largely driven by a rise in output. The business conditions improved for a second consecutive month as of July 2017.
Consumer sentiment is improving in Greece (EEM ), with improved tourism and growth in its export sector (SEA). The economic sentiment index increased to 98.4, the highest level since February 2015. It stood at 94 in June 2017.
Business conditions in Greece
Output in Greece (VWO) saw a second rise in production since August 2016. The rate of expansion was also higher in July 2017 than in December 2015. Post-production inventories rose for the first time since October 2010, though at a slower rate. New work orders remained steady in July, in contrast eith output and employment growth.
Employment and purchasing activity
In July 2017, output increased for a third month. Purchasing activity also increased, in spite of steady growth in new businesses. Price pressures remained stable as increased input costs were transferred to clients by raising average selling prices.
In Greece (IEMG), business confidence in output growth over the next year was at the strongest level since April 2014. The improved confidence is mainly due to recovery in European markets with increased investment spending to boost aggerate demand. Greece ‘s return to financial markets, with its plans to sell new five-year bonds, is also helping rebuild confidence in the manufacturing sector. Let’s look at manufacturing activity in Russia in the next article.