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Spain’s factory activity shrinks again in July on weak demand -PMI
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MADRID (Reuters) – Factory activity in Spain contracted for the fifth consecutive month in July as domestic and foreign demand for Spanish goods weakened, a survey showed on Tuesday.
MADRID (Reuters) – Factory activity in Spain contracted for the fifth consecutive month in July as domestic and foreign demand for Spanish goods weakened, a survey showed on Tuesday.
The HCOB Purchasing Managers’ Index (PMI) for Spanish manufacturing compiled by S&P Global fell to 47.8, the lowest level since December, down from 48 in June and 48.4 in May. Readings below 50 denote contraction.
“The deterioration of Spain’s manufacturing sector is moving on at a steady pace, without panic. Still, it’s a downturn, as output is dropping and fewer new orders are coming in,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said in the survey report.
The weak manufacturing sector contrasts with the resilience of the rest of the Spanish economy.
A sister survey showed that the services sector has grown steadily since November and the country’s overall gross domestic product posted solid annual and quarterly growth of 1.8% and 0.4% respectively in the second quarter.
The Spanish government forecasts economic growth of 2.1% for 2023, down from 5.5% in 2022, though the country’s central bank raised its forecast to 2.3% earlier this month from a previous 1.6% and the IMF expects 2.5% growth.
(Reporting by Inti Landauro; Editing by Susan Fenton)
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period.
Economic contraction refers to a decline in national output as measured by GDP, often indicated by a decrease in economic activity.
New orders refer to the total number of new purchase orders received by manufacturers, indicating future production levels.
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