MADRID (Reuters) – Spanish manufacturing activity grew for a seventh consecutive month in August though at the slowest pace in all those months, while business confidence was at its lowest so far this year, a survey showed on Monday.
The HCOB Purchasing Managers’ Index (PMI) for Spain’s manufacturing sector, compiled by S&P Global, stood at 50.5 in August, down from 51.0 in July and 52.3 in June. It was the seventh consecutive reading above the 50 level that separates growth from contraction.
Even though activity slightly expanded, output during the month shrank, employment fell and confidence in the outlook was the lowest so far this year amid concerns that demand growth from European markets will weaken, S&P Global said in its monthly report.
“The recent three-month trajectory clearly indicates a move toward stagnation,” Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said in the report.
The slowdown is consistent with what is happening in the rest of Europe, he said.
The country’s statistics department recently said the economy expanded a faster than expected 0.8% in the second quarter.
Spain’s government expects gross domestic product to expand 2.4% this year and the central bank sees growth at 2.3%, much faster than expected in other large euro zone economies such as France, Germany or Italy.
(Reporting by Inti Landauro; Editing by Hugh Lawson)
