Greek factory activity expanded in May for the fourth month in a row, as output and new orders grew further, while selling prices fell at the fastest pace in two-and-a-half years, a survey showed on Thursday.

S&P Global's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about 10% of the Greek economy, eased slightly to 51.5 from 52.4 in April but held above the 50 mark indicating growth in activity.

New orders rose at a slower pace while output increased in line with April's pace, the survey showed.

"In contrast to the trend seen across the rest of the euro zone, the Greek manufacturing sector remained in expansion territory in May," said S&P Global economist Sian Jones.

"Firms were also less cautious in retaining current holdings of inputs following the first decline in cost burdens for nearly three years."

Input prices declined further on greater availability of goods and softer energy and fuel costs.

In line with this, output charges decreased for the first time since December 2020, ending a 28-month sequence of inflation, while selling prices eased at the fastest pace since November 2020.

Increasing production requirements spurred another round of hiring. However, employment growth softened to a three-month low as work backlogs fell at the fastest pace since February.

Greek manufacturers remained upbeat about output over the coming year on hopes that client demand and planned investment in new products will increase further. (Reporting by Angeliki Koutantou; editing by John Stonestreet)