Greek Manufacturing Growth at Fastest Pace in 9 Years

Greek manufacturing activity expanded in September at the fastest pace in nine years, as rising demand at home led firms to hire more staff and increase output, a survey showed.

Markit’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about 10% of the economy, rose to 52.8 from 52.2 in August, the highest reading since June 2008. Readings above 50 denote expansions in activity.

With the jobless rate at 21.1% in the second quarter, the highest in the eurozone, domestic demand was the main driver of the fast-paced growth, as new orders rose at the sharpest pace in 3 and a half years, although new export business declined slightly in the month.

Robust client demand led manufacturers to increase production for the fourth straight month in September, and at the fastest pace in more than nine years, driven by consumer and capital goods.

Input price inflation quickened to the highest rate in five months due to higher raw material costs, the survey showed. But in spite of this, firms on average increased factory gate prices at a weaker pace than in August.