Spain sees manufacturing activity contracting for 6th straight month

By Tuba Sahin

ANKARA (AA) - Manufacturing activities in Spain remained on the decline for the sixth month in a row in December, according to data released on Monday.

Spain's manufacturing purchasing managers' index (PMI) rose to a three-month high of 46.4 in December, up from 45.7 in November, data from US-based financial services company S&P Global revealed.

However, this reading still indicated a contraction, as it was below the threshold value of 50.

Paul Smith, economics director at S&P Global Market Intelligence, said that last month "rounded off a miserable half-a-year or so" for Spain's manufacturing economy, with the sector likely "mired in a technical recession."

Both manufacturing output and new orders dropped significantly in December amid high inflation, general economic instability, and ongoing uncertainty.

Staffing levels stabilized in December following five months of contraction and reflected growing optimism among firms that the worst of the current downturn was passing.

"Moreover, there were also signs that the dominant themes of the pandemic, supply constraints and then exceptionally high price pressures, are dissipating," Smith added.