Greece’s Manufacturing Sector Kicks Off 2026 With Strong Growth

PMI rises to highest in five months on stronger production and export demand

The S&P Global Greece Manufacturing PMI climbed to 54.2 in January 2026, up from 52.9 in December 2025, indicating the strongest expansion in factory activity since August 2025. Readings above 50 signal growth in the sector’s operating conditions.

What’s Driving the Upturn

• Faster Production Expansion: Greek manufacturers reported the quickest increase in output in five months, driven by stronger customer confidence and higher demand.
• Rising New Orders: New business rose sharply, with both domestic and European export demand improving modestly, supporting the overall expansion.
• Employment Growth: Firms continued to hire additional staff, extending a job‑creation trend that began in late 2024 and helping to clear backlogs of work.

Challenges Along the Supply Chain

Despite the positive momentum, supply‑chain disruptions—including protests and logistical bottlenecks—led to longer delivery times and lower inventories, pressuring manufacturers.

At the same time, input costs rose at their fastest pace since March 2025, driven by higher metal prices and transport costs. Many companies passed these higher costs onto customers through increased selling prices.

Outlook and Business Sentiment

Greek manufacturers remain optimistic about further production growth throughout 2026, reflecting improved demand expectations and confidence in ongoing expansion in both domestic and export markets.

What It Means for the Economy

The stronger PMI reading suggests that the Greek manufacturing sector is a key engine of growth at the start of 2026, with increased production, new orders and employment all pointing to improving business conditions. However, cost pressures and supply delays highlight ongoing challenges that businesses will need to manage as the year progresses.

Source: pagenews.gr