MADRID, May 2 (Reuters) - Factory activity in Spain
contracted in April after a two-month expansion, although
indicators such as new hires and orders suggest the retreat may
not last long, a survey showed on Tuesday.
The HCOB Purchasing Managers' Index (PMI) for Spanish
manufacturing compiled by S&P Global fell to 49.0 last month
from 51.3 in March and 50.7 in February. Readings above 50.0
denote growth while those below point to contraction.
The manufacturing industry in Spain has been weak since
mid-2022 including one string of seven consecutive monthly
contractions.
"However, employment growth and a historically high
orderbook are indications that, after all, there should not be a
recession in this sector in the near term," said Cyrus de la
Rubia, Chief Economist at Hamburg Commercial Bank in an S&P
report.
Inflationary and supply pressures, which have dogged
manufacturers in recent months, also eased in April, the survey
showed.
Spain's consumer price inflation has slowed down since last
summer, easing to 4.1% in April from 10.8% last July,
preliminary official data showed on Friday.
The government is estimating economic growth of 2.1% for
2022, down from 5.5% the year before. But there are signs of a
pickup in already: Quarterly growth in the first quarter sped up
to 0.5% from 0.4% in the fourth quarter of last year.
(Reporting by Inti Landauro; Editing by Hugh Lawson)
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