Greece’s manufacturing activity logged a slower fall in May as the economy began to reopen following the loosening of lockdowns amid the coronavirus, or Covid-19, pandemic, survey results from IHS Markit showed Monday.
The manufacturing Purchasing Managers’ Index climbed to 41.1 in May from 29.5 in April. A score below 50 indicates contraction.
Although the index advanced from the April level, the survey signaled the second-sharpest deterioration in manufacturing operating conditions since August 2015. The softer fall was partly linked to a slower decrease in production. At the same time, weak demand led to a steep drop in new orders.
Reflecting lower new orders, Greek goods producers registered a marked drop in employment in May.
Expectations of a prolonged recovery and difficulties accessing credit during the pandemic weighed on confidence.
Input prices decreased at the sharpest pace since February 2016. Firms also reduced their output charges at the second-fastest pace for seven years amid efforts to boost sales.