MADRID – Factory activity in Spain grew for a 14th consecutive month in March though at a slower pace because of pressure on supply chains and rising inflation fuelled by the war in Ukraine, a survey showed on Friday.
IHS Markit’s Purchasing Managers’ Index (PMI) for manufacturing stood at 54.2, down from 56.9 in February but still well above the 50.0 mark that separates expansion from contraction.
“Unsurprisingly given the uncertainty and instability caused by the war in Ukraine, the Spanish manufacturing sector expanded at a slower rate,” IHS Markit’s economist Paul Smith said.
A strike by truckers against fuel price hikes and rising costs caused supply chain disruptions that hampered production, he added.
Hitherto rising optimism was dampened somewhat during the month, IHS Markit said. “Firms signalled they were bracing for a challenging period.”
After expanding a slower-than-expected 5.1% in 2021, the Spanish economy has been expected to grow faster this year. But the government’s 7% target is under threat from the impact the war is having on inflation and trade.
(Reporting by Inti Landauro; editing by John Stonestreet)
