July 1, 2019 / 7:22 AM / 3 months ago

Spanish manufacturing shrinks in June at fastest rate in six years - PMI

MADRID, July 1 (Reuters) - Spain’s manufacturing sector contracted at its fastest rate in more than six years in June as output and new orders fell, a survey showed on Monday, pointing to a weak end to the second quarter.

Markit’s Purchasing Managers’ Index (PMI) of manufacturing companies slumped to 47.9 in June from 50.1 in May, the second time the index has dropped below the 50 line separating growth from contraction since February.

“The latest data indicate that there is a real chance that the industrial sector will prove to be a drag on second quarter economic output,” Paul Smith, Economics Director at IHS Markit said.

“The sector is being buffeted by a challenging economic environment, characterised by ongoing global trade tensions and political uncertainties.”

The manufacturing output index dropped to 47.4 in June from 50.0 in May, the first time the output index contracted since November 2013.

Spain’s economy grew 0.7% in the first quarter on the back of strong domestic demand. It is expected to have grown by 0.6% in the April to June period.

Reporting by Paul Day; Editing by Hugh Lawson

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