Greek factory activity picked up for the 11th month in a row in December, on the back of rising domestic and foreign demand which also boosted employment, a survey showed on Tuesday.

S&P Global's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about 10% of Greece's economy, rose to 51.3 in December from 50.9 in November.

Readings above 50 indicate growth in activity.

Greece's manufacturing sector outperformed a downturn in manufacturing in much of the rest of the euro zone.

"Greek manufacturers ended 2023 in a positive position, as demand conditions brightened both domestically and in external markets, and employment rose at a faster pace," said Sian Jones, an economist at S&P Global Market Intelligence.

Output rose, as new orders grew at the fastest pace since August. New export orders increased for the first time in four months, thanks to stronger demand from key markets in Europe and the Middle East.

To address that, manufacturers hired more staff with workforce numbers growing at the fastest pace since August.

Selling prices rose at a steeper pace, as cost inflation accelerated notably in December on rising fuel, energy and material prices. "Nonetheless, our current forecast expects consumer price inflation (CPI) to moderate further in 2024 to 2.4%, down from an expected 4.6% in 2023," Jones said.

Firms were upbeat on the outlook for output in the coming 12 months, as they expected a further rise in new orders and investment in new machinery, along with a greater access to new markets. (Reporting by Angeliki Koutantou; Editing by Susan Fenton)