World Economy

Spanish Factory Orders Surge

Spanish Factory Orders SurgeSpanish Factory Orders Surge

New factory orders in Spain surged in May, pushing growth in the manufacturing sector to its fastest rate in over eight years, a survey showed on Monday, Reuters said. Markit’s Purchasing Managers Index of manufacturing companies rose to 55.8 in May from 54.2 in April. That marked the 18th straight month above the 50 line separating growth from contraction in activity, and was the highest pace of growth since April 2007. Spain’s economic turnaround accelerated in the first quarter of 2015, buoyed by a pick up in private consumption and government spending, and is projected to keep growing at a similar 0.9 percent of output in the second quarter.  A slight recovery in credit and a cheaper euro are also lifting the Spanish economy. The rise in new manufacturing business in May reached a more than eight-year high and was boosted by domestic demand and exports, Markit said.  “Growth seems to be accelerating,” Markit said. “Both output and new orders rose at rates not seen since before the economic crisis began in 2007.”