Jan. 2 () –
The activity of the manufacturing sector in Spain deteriorated again in December, accumulating six consecutive months of contraction, according to the purchasing managers index (PMI), which stood at 46.4 points, compared to 45.7 the previous month. which represents the slowest rate of decline since last September and offers signs of stabilization, according to S&P Global Market Intelligence.
“December closed a disastrous period of approximately half a year for the Spanish manufacturing economy,” said Paul Smith, an economist at S&P Global Market Intelligence, for whom the sector “is probably mired in a technical recession” due to the impact of high inflation, the economic instability and uncertainty.
Thus, both manufacturing production and new orders fell sharply in December and companies reported
It is widely believed that continued market uncertainty and broader economic instability are hurting demand both at home and abroad, leading to the 10th straight drop in new export orders.
In this sense, the resources in the manufacturing plants were focused on completing the existing contracts for the seventh
consecutive month, registering a marginal increase in the inventories of finished products.
Also, staffing levels stabilized after a
five-month period of contraction as a result of growing optimism among companies that the worst of the current slowdown is passing and that there will be a recovery in sales and consumption in the next twelve months.
Thus, business confidence picked up in December to reach its best level since mid-year.
“The latest PMI data raises hopes that the sector has at least stabilized, if not turned around and is heading back to better health,” Paul Smith added.
