Spain: Manufacturing gauge declines in August
September 1, 2014
The Markit Spain Manufacturing Purchasing Managers’ Index (PMI) retreated from 53.9 in July to 52.8 in August, which marked a four-month low. That said, the index is still above the 50-threshold that separates expansion from contraction in business conditions, as it has been for nine consecutive months.
Despite the decline seen in August, Spain’s manufacturing conditions remained supportive to growth. According to Markit, “although output growth has eased from the sharp rates seen in the second quarter, a faster rise in new business and build-up of backlogs of work suggest that the current sequence of expansion will continue in coming months. One note of caution is that discounting was required in order to secure sales in a number of cases, providing the impression that client demand remains fragile.”