Greece manufacturing growth eases in September amid cost pressures

Greece's manufacturing sector showed signs of easing growth in September amid rising cost pressures, according to data from S&P Global. The S&P Global Greece Manufacturing Purchasing Managers' Index fell to 54.0 in September from 54.4 in August, still indicating sector expansion, but at a slower pace. New orders surged at the fastest pace in six months, while new export orders increased at the steepest rate in 18 months, driven by demand from European and Asian customers.

Production levels rose at a solid pace, though slightly faster than in August. Employers continued to add staff at a sharp rate, with most new hires being full-time to accommodate new orders. However, job creation slowed from August's high. Backlogs of work fell for the third time in four months, the quickest decline since April.

Despite the slowdown in hiring, the increased workforce helped manufacturers reduce outstanding business. Supply chain issues, such as delayed supplier deliveries and stock shortages, contributed to the problem. The cost of inputs surged from August, primarily due to higher costs for oil, fuel, energy, and materials following the Middle East conflict.

Manufacturers responded by raising selling prices at a marked pace. However, they also reduced their input buying at the weakest pace since May, focusing on reducing inventories amid cost concerns. Business confidence for the year ahead remained high, supported by planned investments in technology and new client and contract wins. Optimism, however, eased slightly due to concerns over pricing power.