THE manufacturing activity In Spain, that is, what is being achieved in factories, has moderated, coming dangerously close to contraction levels, according to the purchasing managers index (PMI). Thus, the indicator went from 51 points the previous month to 50.5 points in August, 50 being the support that determines whether the sector is growing or not.
The PMI index is a macroeconomic indicator which is prepared through a survey that assesses the purchase level And production achieved by different sectors. The indicator is generally a faithful reflection of the future of the private sector.
In August, operating conditions in the Spanish manufacturing economy continued to improve overall, although the latest data showed divergent trends in several key areas.
Manufacturing activity in August
So, even though new orders increased, production decreased slightly, employment fell for the first time since last January and trust the outlook has fallen to its lowest level in eight months.
As for the priceTHE inflation Input costs remained unchanged in August for the seventh consecutive month. The inflation rate continued to decline from its recent peaks in June, reaching a four-month low.
“Trends in the Spanish manufacturing sector continue to show signs of weakening. Although the sector index currently stands at 50.5 points and remains slightly above the unchanged level of 50 points, the recent trajectory of the last three months clearly indicates a tendency to stagnation“, warns Jonas Feldhusen, junior economist at Hamburg Commercial Bankfor whom this development is consistent with the global economic environment in general.
Thus, analysts warn against the drift of Spanish manufacturing activity, which continues in expansion zonebut it is dangerously close to contraction.
