Greece‘s manufacturing industry continued to expand in March, with production and new orders showing growth, however input prices rose at the sharpest rate since June 2022, according to S&P Global.
According to the latest S&P Global Greece Manufacturing PMI report, the headline Purchasing Managers’ Index (PMI) rose slightly to 54.5, up from 54.4 in February, marking the strongest reading since August 2025.
Global demand
At the same time, growth rates moderated compared with February as international demand weakened. Notably, new export orders fell at the joint-steepest pace since December 2022, highlighting the impact of global uncertainty on Greek manufacturers.
Increased input prices were seen across energy, oil, and raw material prices, partly influenced by the ongoing war in the Middle East. Firms responded by stockpiling inputs ahead of expected further price increases, while supplier lead times lengthened significantly.
These challenges also contributed to slower employment growth, which was the weakest in eight months, as firms weighed staffing decisions against rising costs. Despite these pressures, manufacturers were able to raise selling prices, aided by sustained domestic demand.
‘Widespread uncertainty’
“The Greek goods-producing sector signalled resilience in the face of growing headwinds during March, as output and new orders continued to expand despite widespread uncertainty in economic conditions,” commented Siân Jones, principal economist at S&P Global Market Intelligence. “Although easing, rates of growth in production, new sales and employment were historically elevated.
“That said, heightened disruption to supply chains and surging costs placed strain on international demand and balance sheets, with new export orders falling and input prices rising at the sharpest rate since June 2022. Meanwhile, lead times for inputs lengthened to an extent not seen since interruptions to trade routes in the Red Sea during 2024.
“Although firms signalled that sustained demand enabled them to push through some of the hike in costs to customers via a steeper rise in selling prices, business confidence slumped on concerns regarding the trajectory of new order inflows. The latest S&P Global Market Intelligence forecast for industrial production is for a rise of 1.6% in 2026, lowered from a previous prediction of a 2% increase.” Read more here.
