|  NEWS

Manufacturing activity increased in Spain for the fifth consecutive month in June, although at a slightly slower pace than recorded the month before.

This is according to the latest findings from a survey published on Monday.

Indeed, the HCOB Purchasing Managers' Index (PMI) for the country’s manufacturing sector, compiled by S&P Global, registered a reading of 52.3 in June, a fall from May’s figure of 54. 

This was the fifth straight reading above the 50-mark that divides growth from contraction, Reuters news agency reports.

Within its monthly report, S&P Global said that output and new orders were given a boost from positive demand conditions, leading businesses to recruit more staff.

That said, cost pressures and political and economic uncertainties have begun to weight on Spain’s business activity.

“Spanish manufacturers are struggling with re-accelerating input prices. Panellists report that shipping costs and a range of raw materials especially were responsible for the re-acceleration in input prices,” stated Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank in response to this latest S&P Global report.

In addition, cost pressures were at their strongest as recorded by the survey since November 2022.

Nonetheless, the results of the survey are promising for Spain's economy, which grew by 0.8% within the first three months of the year.

Furthermore, Spain’s central bank forecast growth will slow down to 0.5% in the second quarter yet register 2.3% growth for this year as a whole.

Whereas the government anticipates that growth this year could near 2.5%, outpacing countries like Germany, France, and Italy.

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