Key Takeaways
- The Greek manufacturing sector expanded in December 2025 as the S&P Global Greece Manufacturing PMI rose to 52.9 from 52.7 in November.
- Growth was driven by a quicker rise in new orders, despite supply chain disruptions and accelerating input costs.
- Employment growth remained strong, and business confidence reached a seven-month high, indicating optimism for continued recovery.
The Greek manufacturing sector showed steady improvement in December 2025, with the S&P Global Greece Manufacturing PMI inching up to 52.9 from 52.7 the previous month. This increase highlighted ongoing sector expansion rooted in stronger new order inflows, amid challenges such as supply chain constraints and rising material costs. Industry players remain cautiously optimistic as employment growth stayed robust and business sentiment improved substantially.
New Orders Bolster Manufacturing Growth Despite Supply Chain Headwinds
December’s uptick was sustained by a faster increase in new orders, reversing November’s subdued demand momentum. Manufacturers attributed this growth to the competitiveness of Greek goods and marginally higher export orders, primarily from European markets. However, output growth slowed to its lowest point in three months due to delayed input deliveries, a consequence of strikes and protests disrupting port operations.
Input cost inflation accelerated at the sharpest pace in nine months, largely driven by shortages of raw materials. As a result, firms raised selling prices more aggressively than in November, though the increase remained moderate compared to earlier in 2025. To combat supply uncertainties, manufacturers expanded purchasing activities, albeit limited by longer lead times, while pre-production inventories saw only slight increases. Finished goods inventories contracted as companies prioritized selling directly from stock.
Employment growth continued strongly, with firms predominantly hiring full-time staff to meet heightened production demands. Although the pace of hiring softened slightly from November, December still recorded the second-fastest employment expansion since May 2025. This hiring trend reflects manufacturers’ efforts to balance production needs with ongoing supply challenges.
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Business Sentiment and Sector Outlook Improve
Business confidence in the manufacturing sector surged to a seven-month peak, reflecting growing optimism over future demand prospects. Firms expressed intentions to invest in new product development and machinery, signaling confidence in sustained sector recovery. Siân Jones, Principal Economist at S&P Global Market Intelligence, noted, “The Greek manufacturing sector signalled a rebound in demand momentum at the end of 2025, as new order growth quickened. Expansions in employment and input buying underpin this positive phase, despite persistent supply chain issues.”
The stronger PMI and heightened business confidence underscore manufacturing’s pivotal role in Greece’s broader economic recovery. Yet, the sector remains vulnerable to logistical bottlenecks and inflationary pressures, suggesting that improving supply chain resilience will be essential to unlocking sustained growth in 2026.
Manufacturing: Market Outlook
With the PMI rising to 52.9 in December 2025, Greek manufacturing has established a foundation for continued expansion. The combination of increased new orders, solid employment growth, and improving confidence bodes well for the sector. Nonetheless, challenges such as supply chain disruptions and cost inflation necessitate cautious navigation. How manufacturers manage these factors will shape the trajectory of Greece’s manufacturing recovery into next year.
