Greece's Purchasing Managers’ Index (PMI) fell to 44.5 points in May, from 46.8 in April, reflecting the worsening conditions in the country’s manufacturing sector in the last three months. Production by Greek manufacturers fell for the 20th consecutive month, while the rate of decline was the highest in the last three months in May, reflecting lower new orders and weakening domestic demand.
New export orders received from abroad rose slightly in May, for the first time since August 2010, while Greek manufacturers cut their workforce and inventories at an increasing rate. Pending works fell at the fastest rate in four months, while Greek enterprises were forced to cut their prices for the third consecutive month.
Buying activity fell strongly in May, along with inventories.
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.