May 4 (Reuters) – Spain’s manufacturing output and new orders rose in April as clients rushed to secure stock amid disruptions due to the war in Iran, a survey by S&P Global showed on Monday.
The S&P Spain Manufacturing Purchasing Managers’ Index (PMI) rose to 51.7 in April from 48.7 in March, jumping back above the 50 mark separating growth from contraction for the first time since November.
Production grew at the strongest pace in five months, while new orders increased marginally. Export demand remained weaker, however, with new export orders falling for an eighth straight month, though the decline eased.
“Spain’s manufacturing sector recorded growth of both output and new orders in April, marking a positive reversal,” said Paul Smith, economics director at S&P Global Market Intelligence.
“However, lift the lid on the latest data and growth was in part supported by client inventory building as firms raced to secure goods given the product shortages and supply disruption caused by the war in the Middle East.”
Price pressures intensified sharply in April. Input costs rose at the fastest rate since June 2022, while factory gate prices increased at the steepest pace since November 2022.
While business confidence improved from March, it remained well below trend as companies worried about prices, supply chains and demand.
The Spanish government has said it expects the economy to grow 2.2% this year although the impact from the conflict could alter its prediction by 0.1 to 0.8 percentage points depending on oil price swings.
(Reporting by Andrei Khalip; editing by Hugh Lawson)
Comments