ATHENS — Greece’s manufacturing sector strengthened in December 2025 as business activity expanded despite ongoing supply chain difficulties. According to S&P Global’s latest Purchasing Managers’ Index (PMI) released on January 2, the PMI edged up to 52.9 from November’s 52.7, supported by faster growth in new orders driven by competitive pricing and improved demand, including a modest rise in exports to Europe.

Manufacturing Performance Under Supply Chain Pressure

While the manufacturing PMI indicated broad growth, output expanded at its slowest rate in three months. Disruptions from strikes and protests at key ports postponed material stockpiling and slowed production increases. S&P Global’s principal economist, Siân Jones, described the sector as experiencing a rebound in demand momentum but continuing to encounter supply bottlenecks.

Input cost inflation rose sharply, reaching levels not seen since March 2025. However, firms were only able to transfer a limited share of these higher costs to customers, as selling price growth remained subdued throughout 2025 to maintain competitiveness. Employment in manufacturing saw robust gains, marking the second-fastest pace of job creation since May 2025, reflecting firms’ efforts to meet rising production requirements amid supply challenges.

Outlook and Sentiment for 2026

Looking forward, Greek manufacturers demonstrated strong confidence in sustained growth during 2026. Expectations for output hit a seven-month high, reinforcing intentions to expand capacity and invest in new product development. This upbeat outlook reflects a belief that demand will continue growing despite persistent logistical hurdles.

The steady expansion of Greece’s manufacturing sector reinforces its vital role in the nation’s economic recovery, especially as international trade conditions improve. Although supply chain disruptions remain a threat, the sector’s capacity to maintain momentum signals resilience and adaptability, offering positive implications for investors and policymakers tracking economic progress as 2026 begins.

Manufacturing: Market Outlook

Greece closed 2025 with its manufacturing PMI at 52.9, a slight but meaningful rise from November, supporting broad sector growth although output pace slowed due to port-related supply delays. New orders accelerated, fostered by competitive pricing and increasing demand, including exports to Europe. Input cost inflation surged to its highest level since March, yet companies kept price increases modest to stay competitive amid inflationary pressures.

Employment expanded robustly, the second-strongest increase since mid-2025. Companies remain optimistic as output expectations hit a seven-month peak, underscoring plans for capacity expansion and innovation investments. This dynamic highlights manufacturing’s key contribution to Greece’s economic momentum, despite ongoing supply challenges and inflationary concerns entering 2026.