Greek factory activity expanded in March for the second month in a row, boosted by growth in output and new orders that led employment to rise at the fastest pace in a year, a survey showed on Monday.
S&P Global's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about 10% of the Greek economy, rose to 52.8 in March from 51.7 in February. Readings above 50 indicate growth in activity. Output production rose for the second straight month in March, at the fastest pace in a year, the survey showed. New orders also grew at the sharpest clip in over a year, while a renewed rise in new export orders brought to an end a nine-month sequence of decline.
"Sharper expansions in output and new orders, alongside a renewed upturn in foreign client demand, supported growth. In turn, firms were keen to step up their hiring and stockpiling efforts amid hopes of greater demand over the coming year," said S&P Global economist Sian Jones. "A further softening of inflationary pressures also boosted optimism, as input prices rose at the slowest pace since July 2020," Jones said, adding that consumer prices were expected to rise 4.3% in 2023.
The pace of job growth was the fastest since April 2022, with Greek manufacturing firms attributing it to increased production requirements and investment in expanding capacity. Average cost burdens faced by Greek manufacturers increased again in March but at a modest pace.
At the end of the first quarter, firms recorded stronger output expectations for the year ahead, with confidence rising to its highest level since the start of 2022. (Reporting by Renee Maltezou; Editing by Toby Chopra)
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