Greece’s Purchasing Managers’ Index (PMI) fell to 40.5 points in October, from 43.2 in September, recording the fourth largest decline in operating conditions ever recorded in Greek manufacturing products in the last 12-and-a-half years.

The Greek manufacturing sector continued worsening in October, at the highest rate in 18 months, with production and new orders recording a significant decline, while demand fell further. Enterprises in the sector continued their efforts to improve competitiveness by limiting inventories and cutting prices despite increased pressure on costs.

New orders fell in October, while production fell at the third fastest rate in history. Pending jobs fell with the fastest rate in more than two years and production volumes fell at the fastest rate since March 2009.

Manufacturing enterprises cut their workforce in October trying to cut costs and reduced their prices as they tried to attract more customers. Factory prices fell despite a strong increase in production costs.

The PMI is a composite index compiled by Markit, measuring business activity in the manufacturing sector. Readings above 50 indicate a growing sector, while readings below 50 a shrinking sector.