Spanish manufacturing expands for fifth straight month, PMI shows
MADRID, July 1 (Reuters) -Spanish manufacturing activity grew for a fifth consecutive month in June albeit at a slower pace than the previous month, a survey showed on Monday.
The HCOB Purchasing Managers' Index (PMI) for Spain's manufacturing sector, compiled by S&P Global, stood at 52.3 in June, down from 54 in May. It was the fifth consecutive reading above the 50 level that separates growth from contraction.
Positive demand conditions boosted output and new orders, prompting companies to take on more workers, though cost pressures and political and economic uncertainties have started to weigh on business activity, S&P Global said in its monthly report.
"Spanish manufacturers are struggling with re-accelerating input prices. Panellists report that shipping costs and a range of raw materials especially were responsible for the re-acceleration in input prices," Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank said in reaction to the S&P Global report.
Cost pressures were the strongest recorded by the survey since November 2022.
Nevertheless, the survey bodes well for Spain's economy which expanded by 0.8% during the first quarter.
Spain's central bank expects growth to slow to 0.5% in the second quarter but to notch a solid 2.3% for 2024 as a whole. The government reckons growth this year could be close to 2.5%, much faster than countries like Germany, France or Italy.
Reporting by Inti Landauro
Editing by Christina Fincher
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