The slowdown in Poland's manufacturing sector eased in December, a survey showed on Monday, while prices for input materials rose at a slower rate than in previous months.

S&P Global's Polish Manufacturing Purchasing Managers' Index (PMI) rose to 45.6 in December from 43.4 in November, but remained below the 50.0 line that separates growth from contraction. Analysts polled by Reuters had expected a reading of 44.0.

"Poland's manufacturing sector remained deep inside contraction territory in December to end the year in recession," said Paul Smith, Economics Director at S&P Global Market Intelligence.

"However, there were some positive signs... Rates of contraction have generally eased, and whilst a long way to go still, the sector is slowly making its way back towards stability."

Inflation rates, a key factor behind falling demand, eased, with costs rising at their slowest rate for 29 months.

Output and new orders continued to decline as a result of lower demand and economic instability. While the rates of decline eased, they remained high by historical standards.

Against this backdrop firms cut jobs and reduced their own purchasing. December was the seventh month in a row that staffing levels and input buying have fallen.

Looking to the future, some firms expressed hopes of a return to a more stable market environment, but others were concerned about the possibility of recession. (Reporting by Alan Charlish; Editing by Hugh Lawson)