Spanish manufacturing expansion slows down in July, PMI shows
2024.08.01 03:33
MADRID (Reuters) – Spanish manufacturing activity grew for a fifth consecutive month in July though at a slower pace than the previous month as demand was weaker, a survey showed on Thursday.
The HCOB Purchasing Managers’ Index (PMI) for Spain’s manufacturing sector, compiled by S&P Global, stood at 51 in July down from 52.3 in June and 54 in May. It was the sixth consecutive reading above the 50 level that separates growth from contraction.
The expansion was the slowest since February as incoming new orders fell for the first time since January, panellists told S&P. For the fifth consecutive month, they reported market conditions had become less favourable.
“The wind in Spain’s manufacturing sector appears to be shifting – headwinds are picking up,” Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said in the S&P report.
Cost pressures remained a problem for business during the month.
The slowdown comes as the country’s statistics department on Tuesday said the economy expanded a faster than expected 0.8% in the second quarter.
The Spanish government expects gross domestic product to expand 2.4% this year and the central bank sees growth at 2.3%, much faster than expected growth in other large euro zone economies such as France, Germany or Italy.
