The manufacturing sector posted its weakest growth rate in five months due to rising energy and transport costs and supply chain disruptions.
Growth in Greece’s industrial production slowed in October 2026 to its lowest level since May, although manufacturing activity and employment continued to increase. The main reasons were rising energy and transport costs, as well as disruptions to supply chains, according to data from an S&P Global survey cited by Greek Reporter and Reuters.
The Purchasing Managers’ Index (PMI) for Greek manufacturing fell to 53.3 points in October from 54 points in September. This was the second consecutive monthly decline, while the indicator remained above the 50-point threshold that separates growth from contraction in economic activity.
Despite the slowdown, companies increased their output at the fastest pace since July. New orders rose for the 24th consecutive month, albeit at the weakest pace since May. Export orders also recorded growth for the fourth consecutive month, thanks to demand from foreign customers.
The most serious challenge facing Greek manufacturers remains rising energy prices. Companies reported a significant increase in the costs of fuel, electricity and transport, linked to the ongoing conflict in the Middle East. Inflation in input costs reached its highest level since May, forcing companies to raise their selling prices at the fastest pace since June.
Delayed deliveries of raw materials and supplies are putting additional pressure on businesses. Manufacturers reported shortages of certain components and logistical difficulties that are extending order fulfillment times.
Despite these problems, employment in the industrial sector continued to grow for the 23rd consecutive month, although the pace of hiring new employees was the weakest since April. At the same time, accumulated backlogs of orders declined for the second consecutive month.
Data on producer prices confirm the mounting pressure on businesses. According to the Hellenic Statistical Authority, industrial producer prices increased by 20.4% year on year in September, while the increase in the energy sector reached 41.2%.
In an effort to limit the impact on industry, the Greek government announced a program in October to support businesses, with a budget of up to EUR 95 million. The funds are intended to cover part of electricity costs, with the measure requiring approval from the European Commission. Payments are expected to begin in 2027.
According to Paul Smith, an economic director at S&P Global Market Intelligence, Greek industry continues to demonstrate resilience despite geopolitical instability. However, business confidence regarding the outlook for the next 12 months fell to its lowest level since May.
The slowdown in Greece coincides with a broader trend in the eurozone. The manufacturing PMI for the currency union fell to 52.7 points in October from 52.9 points in September, indicating that European manufacturers are also facing pressure from high energy costs and disruptions to international trade.
Although Greek industry remains in growth territory, the outlook for the coming months will depend largely on developments in energy prices, the stabilisation of supplies and the recovery of business confidence.