Greek factory activity expanded in August for the seventh month in a row, as output and new orders grew, spurring employers to hire more staff, a survey showed on Friday.

S&P Global's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about 10% of Greece's economy, rose to 52.9 in August from 53.5 in July, the second-fastest expansion since May 2022.

Readings above 50 indicate growth in activity.

New orders grew again in August thanks to strong demand and investment from government funding activities.

"Companies have benefited from sustained growth in demand from domestic and foreign clients, which has supported the improvement in the sector's performance," said S&P Global economist Sian Jones.

"Efforts to relieve pressure on capacity by stepping up employment were successful as backlogs returned to contraction."

Input costs rose after three months of decline, driving operating expenses higher for the first time since April, on the back of higher energy and raw material prices.

"For the moment, however, pressure on customer prices remained subdued as output charges were broadly unchanged on the month again. Our current forecast expects consumer price inflation (CPI) to ease to 3.8% in 2023," Jones said.

Greek manufacturers appeared more confident about output in the coming year on hopes for investment and hopes that demand will remain robust in the coming months. (Reporting by Angeliki Koutantou; Editing by Hugh Lawson)