Manufacturing growth in Greece hit a five-month low in October as energy costs surged and suppliers struggled to deliver materials, according to a survey released Monday. The slowdown added to signs that international fuel and shipping disruptions are putting pressure on the country’s factories, even as production and hiring continue to rise.
The S&P Global Greece Manufacturing Purchasing Managers’ Index fell to 53.3 from 54.0 in September, its second monthly decline. A reading above 50 signals expansion, meaning the sector was still growing, though more slowly than in recent months.
Factories increased output at their fastest pace since July, while new orders rose for a 24th consecutive month. Growth in orders, however, was the weakest since May. Export orders increased for a fourth straight month as manufacturers reported demand from customers at home and abroad.
Energy costs surge as Greece manufacturing growth hits a five-month low
Manufacturers reported sharp increases in the cost of energy, fuel and transportation amid disruptions linked to the Middle East conflict. Input price inflation reached its highest level since May. Firms passed some of those costs to customers, raising selling prices at the fastest pace since June.
Suppliers took longer to deliver goods, with companies citing shortages of materials and delays along shipping routes. Factories increased their purchases of inputs but continued to draw down inventories. Hiring also continued for a 23rd month, though job growth slowed to its weakest since April. Backlogs of unfinished work fell for a second month.
Paul Smith, economics director at S&P Global Market Intelligence, said the industry showed “further resilience” despite instability. Manufacturers still expected output to increase, but confidence about the year ahead fell to its lowest level since May amid geopolitical uncertainty and concerns about unrest spreading from elsewhere in Europe.
Greek price data underscores pressure on factories
Official figures published Oct. 30 showed that Greek industrial producer prices jumped 20.4% in September from a year earlier, according to the Hellenic Statistical Authority. Producer prices in the industrial energy category rose 41.2%, underscoring the broader price pressures facing businesses.
In October, Greece outlined a program worth up to 95 million euros ($106.32 million) to help eligible industrial companies manage electricity bills. The government said the plan needed European Commission approval, with payments expected in 2027.
The slowdown also followed a wider loss of manufacturing momentum across the eurozone. The bloc’s factory PMI eased to 52.7 in October from 52.9 in September. The European Central Bank kept interest rates unchanged on Oct. 29, warning that prolonged energy increases could push inflation higher while holding back growth.
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