Greece manufacturing growth slows as supply issues persist

Greece's manufacturing industry showed modest growth in October, but expansion slowed compared to the previous month due to supply chain issues and rising costs, according to S&P Global data. The S&P Global Greece Manufacturing Purchasing Managers' Index slipped to 53.3 in October from 54.0 in September, signaling the weakest growth since May.

The index above 50 indicates manufacturing sector expansion. While production rose at the fastest pace since July, new orders increased at the slowest rate since May. Employment in the sector grew for the 23rd consecutive month, though hiring slowed to the weakest pace since April. Companies trimmed their orders backlog for the second month in a row.

New export orders surged for the fourth month straight, with demand from both domestic and international clients proving robust. However, supply chain challenges persisted due to Middle East tensions disrupting global trade. Suppliers faced delivery time delays and stock shortages, while transportation disruptions along key routes added further complications.

Input costs surged at their fastest pace since May, with energy, fuel, and transportation expenses driving the increase. Companies passed these cost hikes onto customers, with output prices hitting a four-month high. Manufacturing activity rose for the 24th consecutive month, but at the weakest growth rate in five months. Companies continued reducing input inventories for the seventh month running.

Business confidence dipped to a five-month low amid concerns of potential protests spreading from Europe to Greece and ongoing geopolitical uncertainties casting a shadow over the outlook.