In December, the Greek manufacturing sector proved strong at year-end 2024as sector performance improved at the fastest pace since July, according to the latest PMI® survey data from S&P Global. The overall rise was supported by faster increases in output and new orders as demand conditions improved. Also, the companies morale had rebounded thanks to a stronger inflow of new orders, sending business confidence about the outlook for output next year to its highest level in seven months. Goods producers also recorded fresh employment growth as input purchases grew at a faster pace.

At the same time, the inflationary pressures intensified as input costs and output charges rose at a faster rate.

The seasonally adjusted S&P Global PMI for the manufacturing sector in Greece (Purchasing Managers’ Index™ – PMI) closed at 53.2 points in December, higher than 50.9 points in November. The latest data indicated the sharpest improvement in the health of the goods-producing sector since July. The improvement was broadly stable and historically elevated.

The third consecutive monthly increase in production at the factories of Greek manufacturers in December contributed to overall growth. The pace of growth accelerated to the fastest since June, supported by stronger demand from customers and faster growth in new sales.

The increase of new orders at the end of 2024 it was broadly stable, having accelerated at the strongest rate recorded since May. Panelists said stronger demand from key industries, including construction, coupled with increased interest from overseas customers, boosted new work.

In addition, new export orders also rose for the second consecutive month in December. The pace of growth was the sharpest since April on reports of stronger demand from customers in the US, Europe, Asia and the Middle East.

Meanwhile, companies suspended cuts due to fresh employment growth and further increases in input purchases. Panel members said several times that the increases were driven by a stronger inflow of new orders and a stronger outlook for production next year.

Job creation has been recorded during two of the past three months, with December’s growth in employment and purchasing activity being the strongest on record in five months.

Meantime, the volume of unprocessed work in the factories of the Greek manufacturers it declined further at the end of the year. However, the pace of decline eased to the slowest in four months due to a stronger inflow of new orders.

December data indicated an improvement business trust of goods producers, as optimism about the outlook for output next year rose to a seven-month high. Hopes of further strong customer demand and the launch of new product lines supported the positive sentiment.

As for the pricesinput costs rose at a steeper pace during December. According to reports, the rise was driven by supplier shortages of some items, particularly food. The pace of cost growth was the fastest on record since July and historically high

In proportion to the steeper rise in input prices, Greek manufacturers increased output charges at a steeper pace in December. The rise in selling prices was the fastest since August and higher than the survey average, as companies tried to pass on higher costs to customers.

End, delays in supply deliveries moderated during December. Input lead times lengthened steadily, albeit by the least on record in 2024. As a result, inventories of both finished goods and supplies remained largely unchanged during the month as some companies reportedly weathered the order requirements using existing inventory.

Siân Jones, Chief Economist at S&P Global Market Intelligence, commented: “The Greek manufacturing sector registered an increase in momentum during the last month of 2024, as output, new orders and input purchases grew at a stronger pace. At the same time, job creation resumed as employment rose at the fastest pace since July. Companies benefited from the uptick in demand conditions and, despite ongoing supply chain challenges, were optimistic that output would pick up over the coming year. However, one key factor that needs monitoring is inflation. Cost and selling price growth rates accelerated again and were historically elevated due to material shortages. Nevertheless, inflationary pressures are expected to ease in 2025 as, according to our current forecast for consumer price growth, annual growth is expected to be 2%, compared to 2.9% in 2024.”