Recovery in Greece – manufacturing expands first time in a year

Greece manufacturing sector posted first expansion in 12 months, as measured by market manufacturing PMI. Headline PMI came at 50.2, above 50 indicates expansion. Deterioration had begun in September, 2014, which got exacerbated during 2015 standoff between ruling Syriza party in Greece and rest of Euro zone members. Manufacturing gauge dropped below 30 mark during June/July standoff.

Headline recovery has been swift since as Greece received third bailout package from Euro Zone members.

Operating conditions improved for first time in sixteen months but only marginally. Staffing also improved but again only marginally. However incoming new orders have been weak and new export orders declined but at much slower rate.

Since Greece has been weakest point in Euro Zone recovery, manufacturing expansion is surely an encouraging news. However, any recovery that can be termed as solid might still be further away. Overall Euro Zone recovery has been stronger with December manufacturing at 53.2.

Better data across Euro zone, along with Greece's expansion likely to improve market mood, which has been shattered by weak data from China and turmoil in Middle East.

Euro is currenly trading at 1.091 against Dollar.