Spanish manufacturing sees end to contraction

The Spanish purchasing manager's index (PMI) for manufacturing has risen in June, well beyond expectations, to 50 (release). This value implies that the sector is neither expanding or contracting. This is the highest reading for Spain since April 2011.

Economists had forecast a smaller rise, from 48.1 to 48.5. Commenting on the PMI survey data, Andrew Harker, economist at Markit and author of the report, said:

The second quarter of 2013 ended on an encouraging note for the Spanish manufacturing sector, with PMI data pointing to a rise in new business and an easing in the rate of decline in production. The improved performance was heavily reliant on export growth, however, with little sign of recovery in domestic client demand.