Greece's manufacturing sector shrunk for a fourth consecutive month in December, but at a slower pace, survey results from IHS Markit showed Monday.
The seasonally adjusted Markit Greece Manufacturing Purchasing Managers' Index rose to four-month high of 49.3 from 48.3 in November. A score below 50 suggests contraction in the sector.
Firms registered weaker declines in both output and new orders, though job shedding, albeit slight, was also evident for the first time since May.
Input costs rose substantially, with firms primarily linking the rise to higher prices for steel, zinc and dairy products. The rate of cost inflation outstripped the long-run series average.
Consequently, businesses raised selling prices at the sharpest pace since September 2008 in the face of a substantial increase in input costs.
"Although the overall downturn eased to the weakest for four months, with output and new orders contracting at softer rates, the latest deterioration capped off the worst quarter of the year for Greek goods producers," IHS Markit economist Samuel Agass said.
"Overall, 2016 has been a challenging year for the sector, which continues to remain well short of a full economic recovery," the economist said.
"Firms will be hopeful that the new year can bring renewed growth, but until consumption picks up and can be sustained, the likelihood remains slim."
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