Spain factory activity grows in Dec at slowest pace since Aug 2016

[MADRID] Spain's manufacturing sector grew at its slowest pace since August 2016 in December, a survey showed on Wednesday, as easing growth in output and new work weighed, though business confidence improved.

Markit's Purchasing Managers' Index (PMI) of manufacturing companies stood at 51.1 in December, down from 52.6 in November and compared with a Reuters poll of 52.4. The index has held above the 50 line separating contraction from growth for every month for just over five years.

"The manufacturing sector ended 2018 on a rather muted note, expanding at a rate that remained in stark contrast to the strong levels seen at the start of the year," Paul Smith, Economics Director at IHS Markit said.

"Indeed, the underlying erosion of growth has been a key feature of 2018's sector performance. This was in part a natural reaction to the unsustainable levels of expansion seen in late 2017, although the downward trend was exacerbated by rising economic and political instabilities, especially in relation to global tariffs."

Manufacturing sector output also expanded at its slowest pace since August 2016, falling to 51.5 in December from 53.6 in November.

REUTERS