Greece’s Purchasing Managers’ Index (PMI) - compiled by Markit -- ended at 42.8 points in February, unchanged from January, remaining at eight-month lows due to a severe economic recession in the country.

Production in the manufacturing sector, new orders and employment fell steeply, while pricing pressures increased. Manufacturing companies said a combination of low demand, weak financial conditions and strong competition continued having a negative effect on enterprises.

Greek manufacturers limited their production at a strong rate in February, with 40 pct of participants in the survey recording a shrinking production volume. Incoming new contracts in the sector continued falling in February, extending the decline for the 18th consecutive month, with domestic demand falling more strongly. Greek manufacturers cutback at costs and used their available funds to cover their operations.

As a result, employment levels, purchasing activity, inventories and pending jobs continued falling in February. Greek manufacturers also paid higher prices for their supplies in February, reflecting higher raw materials’ prices.

The Purchasing Managers’ Index measures business activity in the manufacturing sector. Readings above 50 indicate a growing sector, while readings below 50 a shrinking sector.