Greek PMI rose to 54.6 points in July

Strong demand in July contributed to the improvement of optimism among manufacturers, with the optimism index rising to the highest level since July 2012, while inflationary pressures weakened.

Greece's Purchasing Managers' Index -PMI - rose to 54.6 points in July from 52.4 in June, a three-month high. The index continued growing for the 26th successive month, reflecting a big increase in new orders, faster deliveries and higher sales. New export works also rose, with manufacturers raising their production in July. Higher sales growth raised manufacturers' hopes that production will continue rising in the next year.

Employment levels rose strongly as companies tried to increase their workforce, allowing companies to reduce the volume of outstanding works for the sixth month in a row.

Manufacturing companies also raised their purchasing activity, delivery times were extended, inflow inventories fell and supply inventories dropped for the 10th month in a row. Inflow cost growth slowed for the fourth successive month in July, while outlfow prices rose in the month, although at a slower pace.

The PMI is a composite index measuring business activity in the manufacturing sector. Readings above 50 indicate a growing sector while readings below 50 a shrinking sector.