Greek manufacturers recorded another steady monthly increase during June, according to the latest data from S&P Global's Purchasing Managers' Index (PMI) survey.

Operating conditions continued to improve at historically high rates as production and new orders increased further. However, the growth rates of production, new sales, and input purchases weakened to the slowest recorded since December 2023, while business confidence fell to its weakest level recorded in 2024 to date.

Goods producers continued to hire additional staff at a steady pace, although the pace of job creation weakened while the volume of backlogs fell further.

Meanwhile, the impact of the disruptions to shipping routes worldwide continued to be felt due to the sharp lengthening of delivery times for supplies. As a result, higher transport costs have pushed up operating costs. The rates of increase in input prices and output charges remained historically high.

S&P Global's seasonally adjusted S&P Global Purchasing Managers' Index for the manufacturing sector in Greece closed at 54.0 points in June, indicating a solid recovery in the health of the Greek manufacturing sector mid-year. However, the pace of improvement weakened for the third consecutive month and was the slowest recorded since the end of 2023.

New order growth remained strong in line with historical data as demand conditions reportedly remained favourable for sales in June. However, the pace of growth weakened to the weakest on record so far in 2024, as some reports of more subdued confidence among existing customers weakened the overall uptick.

In addition, new export orders rose for the seventh consecutive month, but at only a marginal pace, which was the slowest on record since December 2023.

As a result, Greek manufacturers recorded further, albeit weaker, mid-year output growth. The pace of growth weakened again from the recent high in March, but was still significantly higher than the long-term survey average due to continued demand for Greek goods.

Greek manufacturers displayed additional strength in the middle of the year, Siân Jones, Chief Economist at S&P Global Market Intelligence, stated. "Continued demand from new and existing customers supported production and new orders. However, there was a slight reduction in momentum compared to the notable increases seen earlier in 2024, although growth was steady.

However, supply chain delays again weighed on the sector. Challenges in traditional shipping routes and delays at major ports led to a sharp increase in transport and input costs. Although demand conditions were favourable for increases in selling prices, there was further moderation in the pace of growth as billing rates rose at the weakest rate recorded since last November in an effort to remain competitive.

Companies maintained their confidence in the outlook for output, and according to our latest forecasts, industrial production is expected to grow by 3.2% year-on-year in 2024."