- Markit senior economist Phil Smith
Manufacturing output in Greece tumbled once again in March as new orders shrank, with the impact of the crisis in neighbouring Cyprus yet to take its toll on the local economy, a survey by Markit Economics showed on Monday. Greek seasonally adjusted purchasing managers' index for the manufacturing sector fell to 42.1 in March from 43 in February and moved further away from the 50 threshold, which separates growth from contraction. A gauge of manufacturing activity has held below the 50 point line since September 2009, just before the country's fiscal problems came to light, triggering a debt crisis in the region and plunging the Greek economy into recession. Tight austerity measures are expected to keep the nation's overall economic output in contraction for a sixth straight year in 2013, as the GDP is expected to contract by 4.5% this year.
"After rising in the opening two months of the year, the headline PMI dipped in March, largely reflecting faster declines in both output and new orders," said Markit senior economist Phil Smith.
"Eyes now turn to next month's release for an early insight into whether developments in nearby Cyprus have impacted business and consumer confidence," he added.
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