The Purchasing Managers’ Index for the Greek manufacturing sector dropped to its lowest in 12 months in November, reflecting the major contraction in both output and new orders for the domestic and international markets.

The Greek PMI index, as measured by IHS Markit, stood at 48.3 points last month, against 48.6 in October.

The drop in output was the steepest recorded since July, with companies attributing it to the weaker demand for Greek products. Even more worrying was the slide in new orders, while orders from abroad in particular posted the biggest decline in a year.

The reduced number of new projects and new orders resulted in staffing levels remaining stagnant, against an increase recorded in previous months.

The situation in the Greek manufacturing sector has been exacerbated by the rise in the cost of certain raw materials, which last month was the sharpest in 16 months. There was a major hike in the prices of paper, steel and thermoplastics. In an effort to remain competitive, Greek industries continued to slash the prices of their products.

Markit economist Samuel Agass, who compiles the Greek index, commented that it is worrying the drop in demand for Greek goods continues to hamper the sector’s growth, while material costs have upped the pressure on manufacturers.