Spanish factory activity grows in December after November dip

Reading Time: 2 minutes

Spanish factory activity expanded in December after a dip in November, a survey showed on Monday, even though the effects of the coronavirus pandemic are still weighing on businesses.

IHS Markit’s Purchasing Managers’ Index (PMI) of manufacturing companies rose to 51.0 in December from 49.8 in November, bouncing back above the 50-point line denoting expansions in activity. The November figure had followed two months of growth.

“December was a mixed bag for Spain’s manufacturing sector as a positive uplift in external demand was again offset by sustained domestic weakness,” said Paul Smith, economist at IHS Markit.

External demand prompted the strongest export growth since July, while the weak tourism and hospitality sectors due to the pandemic weighed on domestic demand, IHS Markit said.

The Spanish economy grew a record 16.7% in the third quarter as the economy rebounded from its deepest ever recession, which followed lockdowns and restrictions imposed to curb the pandemic. The economy had contracted 17.8% in the April-June period, while the headline PMI reading dived to 30.8 in April, a record low, when all non-essential economic activity was halted.

Spain’s central bank has said it sees a small economic contraction in the fourth quarter as the likeliest scenario.

Once you're here...

%d bloggers like this: