Greek manufacturing activity shrank in November as contractions in output and new orders led firms to cut workforce numbers again, a survey showed on Thursday.

S&P Global's Purchasing Managers' Index (PMI) for manufacturing, which accounts for about 10% of the Greek economy, rose to 48.4 in November from 48.1 in October, marking the fifth successive monthly decline in operating conditions.

Readings above 50 mark growth in activity.

"Greek manufacturers recorded further challenging demand conditions in November, with data so far in the final quarter of 2022 showing a picture of subdued sector performance," said S&P Global economist Sian Jones.

While contractions in output, new orders and foreign client demand eased from October, stymied new sales inflows due to economic uncertainty and inflation resulted in another muted month of output expectations, she said.

The fall in new orders was steep in November despite softening from October. Firms said inflation and economic uncertainty made clients hesitant, with some cancelling orders.

New export orders fell as demand in foreign markets was challenging and employment fell for the fourth consecutive month. Firms cut workforce numbers amid weak demand and another sharp drop in work backlogs.

Production declined again in November for the sixth month running, albeit at a slower pace, with weak client demand and lower new order inflows driving the downturn.

On the price front, although historically marked, inflationary pressures softened in November. Lower prices for key components and discounts led to slower increases in cost burdens and selling prices.

"There was a reversal in inflation momentum as input costs and output charges rose at softer rates. Reports of lower prices for some inputs and easing supplier disruption could lead to softer rates of increase in the coming months," Jones said.

Business confidence among Greek manufacturers strengthened in November with hopes of increased investment and greater demand supporting optimism. But positive sentiment was still subdued in the context of the series history, the survey showed. (Reporting by George Georgiopoulos; Editing by Toby Chopra)