MADRID, Dec 1 (Reuters) – Spanish factory activity grew in November at a slower pace than in previous months as supply-chain disruptions and price pressures weighed on the sector, a survey showed on Wednesday.
IHS Markit’s Purchasing Managers’ Index (PMI) for manufacturing in Spain fell to 57.1 in November from 57.4 in October. The reading was well above the 50.0 mark that indicates an expansion in activity, though the pace was the slowest since the 56.9 recorded in March.
“The well-known supply-side issues in the global economy continued to curtail growth of the Spanish manufacturing sector during November, with severe constraints in the delivery of inputs leaving firms struggling to expand production,” said Paul Smith, an economist at IHS Markit.
Business people surveyed said prices for metals, packaging, fuel, electricity and freight prices all rose during the month. They also widely reported challenges in the delivery of inputs.
The Spanish statistics office INE reported last week that producer prices rose 32% in the 12 months through October, the fastest pace since it started tracking the indicator in 1976.
“Nonetheless, firms added to their staffing levels again,” IHS Markit reported.
The Spanish economy expanded a weaker than expected 2% in the third quarter, raising concerns about the speed of the post-pandemic recovery.
Growth was a scant 1.1% in the second quarter after renewed curbs on business activity led to a 0.4% contraction in Q1. (Reporting by Inti Landauro)