2013.02.0106:28:00UTC+00Greek Manufacturing Sector Continues To Contract

Greece's manufacturing sector contracted further in January as new business declined sharply, data from a survey by Markit Economics showed Friday.

The seasonality adjusted purchasing managers' index for the manufacturing sector remained unchanged at 41.4 in January. A PMI reading below 50 indicates contraction in the sector, while one above suggests growth.

New orders received by manufacturing firms declined at the steepest pace in eleven months in January, owing mainly to weaker domestic demand.

Reflecting the sharp fall in new business, production declined further during the month. Manufacturers reduced their workforces at the slowest rate since August.

Input price inflation faced by Greek manufacturers weakened to the lowest level in six months, partly due to a stronger euro putting some downward pressure on import prices. Output prices, meanwhile, decreased for the twenty-third straight month, but the rate of decline was the slowest since October 2011.