ATHENS, May 2 (Reuters) - Greece's manufacturing sector continued to expand in April, albeit at a slower pace than the previous month, as inflationary pressures eased and supply chain disruptions persisted, S&P Global reported on Friday.

The seasonally adjusted S&P Global Greece Manufacturing Purchasing Managers’ Index $(PMI.UK)$ fell to 53.2 in April from 55.0 in March, indicating a solid improvement in operating conditions despite the slowdown. PMI readings above 50.0 signal growth, while those below indicate contraction.

April marked the seventh consecutive month of output expansion, driven by sustained client demand and new orders, although both slowed from March's highs. New export orders also grew, albeit marginally, as demand from the US and Europe increased.

Supply chain issues continued to challenge manufacturers, with extended delivery times and material shortages contributing to renewed backlogs. Despite these hurdles, manufacturers remained optimistic about future output, driven by planned investments in machinery and product development.

Employment rose for the fifth consecutive month, although the rate of job creation eased to its weakest in three months.

Input costs increased at a notably slower pace in April, marking the weakest inflation rate since February 2024. As a result, manufacturers moderated the rise in selling prices to remain competitive.

Siân Jones, Principal Economist at S&P Global Market Intelligence, commented: "Greek manufacturing firms continued to signal a solid upturn in the health of the sector at the start of the second quarter. Expansions in output and new orders slowed, however, as external demand conditions softened, but were solid and historically elevated, nonetheless."

The outlook remains positive, with industrial production expected to rise by 3.2% in 2025.

(Reporting by Reuters; Editing by Hugh Lawson)