ATHENS, Feb 1 (Reuters) - Greek manufacturing activity
shrank slightly in January with output broadly unchanged but new
orders falling further as inflation weighed on demand, a survey
showed on Wednesday.
S&P Global's Purchasing Managers' Index (PMI) for
manufacturing, which accounts for about 10% of the Greek
economy, rose to 49.2 in January from 47.2 in December, marking
the slowest downturn since September.
Readings above 50 indicate growth in activity.
Production was steady in January after declining for seven
months in a row, with some firms citing positive developments in
client demand.
However, new export orders contracted further, with cost
inflation including energy prices hurting spending in key
markets.
"Greek manufacturers started 2023 on a muted note. Although
output was broadly unchanged, contractions in new orders and
foreign client demand remained," said S&P Global economist Sian
Jones.
"Encouragingly, however, the rate of decline in new sales
eased notably and was only marginal overall."
Work backlogs fell at the fastest pace since November 2020,
with subdued production requirements prompting a decline in
employment.
On the input price front, cost rises slowed to the lower
level since October 2020 as weak demand dampened supplier price
hikes.
"Although the joint-slowest since February 2021, the rate of
increase in charges was well above the series trend. S&P Global
Market Intelligence currently expect Greek consumer price
inflation (CPI) to soften to 4.0% in 2023," Jones said.
Business confidence remained upbeat in January on hopes of
rising client demand and new orders for the coming year.
(Reporting by Angeliki Koutantou; Editing by Hugh Lawson)
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))
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