Greek manufacturing activity grows for first time in over four years | EurActiv

Greek manufacturing activity grows for first time in over four years | EurActiv

Greek factory activity grew in January, a survey
showed on Monday (3 January), marking its first expansion since the
country's debt problems came to light in 2009 and plunged the eurozone
into a crisis from which it is still recovering.

It is the latest in a series of positive economic data which suggest Greece's six-year economic slump may be bottoming out.

Markit's purchasing managers' index for manufacturing, which accounts
for about 10 % of the Greek economy, rose to 51.2% in January from
49.6% in December, its first time above the 50 line dividing growth from
contraction since August 2009.

That came days after data showed Greek retail sales rose in November
for the first time since April 2010, while construction activity grew in
October for the first time in two years.

Greek stocks welcomed the data with the benchmark share index .ATG gaining 2.01% to 1,201.88 points.

Still, Greece remains locked in difficult negotiations with its EU
and IMF lenders and is expected to require further debt relief and more
bailout aid before it can put its debt crisis behind it. Analysts said
it was too early to call a turning point.

"Before we go from extreme pessimism to extreme optimism we need to
be cautious," said Ilias Lekkos, an economist at Greek lender Piraeus
Bank. "Macroeconomic data has started to stabilize and appears slightly
improved - but compared to very low levels previously."