Greece’s manufacturing sector was absolutely trashed in July, as capital controls were introduced and bailout negotiations reached their dramatic climax — Markit’s latest survey of Greek industrialists confirms that firms have seen their output collapse.
The purchasing managers’ index (PMI) score went through the floor, and employment fell at the fastest rate in Markit’s 16 years of measuring the Greek manufacturing sector.
Here’s how it looks:
That’s Markit’s lowest-ever reading for Greece by a long way. Even in the worst parts of the financial crisis and euro crisis, the figure only dropped below 40 briefly in previous months.
Anything below 50 signals that a sector is in recession, but generally the figure hovers around that level. A score of 60 is considered to be a serious boom, and a figure of 40 would be seen as a major crisis. Greece’s manufacturing PMI hit 30.2 in July.