Factory activity in Spain suffered a loss of momentum in April, a survey showed on Monday, expanding at its slowest pace in more than a year as a result of a transport strike and businesses’ concerns about the war in Ukraine.
S&P Global’s Purchasing Managers’ Index (PMI) for manufacturing stood at 53.3, down from 54.2 in March and 56.9 in February. The index was still above the 50.0 mark that separates expansion from contraction, but marked the slowest growth since February 2021.
Spanish manufacturers faced a combination of problems such as supply chain disruptions, fast inflation and the uncertainties related to the war in Ukraine, S&P Global economist Paul Smith said in a report.
“These factors subsequently dampened production and hit order books, whilst manufacturers ended up with a record increase in warehouse inventories,” he said.
The rising inflation and the uncertainty from the Ukraine war prompted Economy Minister Nadia Calvino to slash her economic growth outlook for this year to 4.3% from 7% after a slower-than-expected growth of 5.1% in 2021.
(Reporting by Inti Landauro; Editing by Toby Chopra)
