The optimism of the Spanish economy is being raised by the industry
The Spanish industrial sector has grown by 34º again this month due to the increase of demand and employment rates, while the Eurozone has also registered a rise for the 39th consecutive month.
Last September 2016, the industrial market in Spain reached its best figures since April by increasing the number of orders and employment. This sector’s purchasing managers’ index (PMI) was of 52.3 points in September, according to a Markit’s consultory firm report.
The PMI index measures data such as the number of new orders, the sector’s employment, the production and occupancy levels, the purchasing stock and the term of deliveries to suppliers in a given market. Anything above 50 points is considered as a growth in a given market.
In this sense, this is already the 34th consecutive month of increase of the industrial sector in Spain. Also, our country abandoned deflation in September for the first time since 2014.
Despite the fact that there is a trend in the businesses to reduce stocks, the increasing number of orders in the manufacturing sector is concentrated in orders from domestic customers and export.
In return, production costs reached their highest level in 14 months by the rising price of steel and food products.
Regarding the Eurozone, the PMI index in September 2016 reached 52.6 points, an increase of 0.9 points compared to August. Manufacturing in Europe has been up sequentially from 39 months, with a constant rate of annual growth of 2% in the third quarter.
The improvement in demand is affecting an increasing the levels of employment in factories, not only Spanish but also European, since the staffing in manufacturing has been the best in the last four years.
This economic data shows that the Spanish economy is recovering gradually from the ravages of the crisis and returning to the path of growth, despite the institutional blockade suffered by Spain since December 2015, while good figures that have also been obtained by the sector in the euro zone cause for optimism. It’s time to #embracespain.
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Del Canto Chambers’ Editorial Board