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Greek factory activity downturn eases in October: PMI

[ATHENS] The downturn in Greek manufacturing activity eased in October as output, new business and employment all contracted at a slower pace, a survey showed on Monday.

Markit's purchasing managers' index (PMI) for manufacturing, which makes up about 10 per cent of the economy, rose to 47.3 points in October from 43.3 in September but stayed below the 50 mark that denotes growth for the 14th month running.

"Overall, the lack of capital circulating through the economy continued to take its toll on operating conditions at Greek manufacturers," said Markit economist Samuel Agass. "However, the economic decline appears to be slowing to a more stable pace."

Production at Greek manufacturers fell for the 10th straight month with some firms blaming a combination of capital controls and a lack of demand. Still, the contraction was the slowest in five months.

New business orders also declined further, although at the weakest pace since March.

Employment at manufacturing firms fell for the seventh straight month but job cuts eased to the weakest level since June.