Spanish Production Strongest Since 2006

Spain’s manufacturing businesses ended the year “on a high”, according to a closely-watched survey of the sector, with overall conditions close to their best state in 11 years.

The latest purchasing managers’ index came in at 55.8, a slight decline from November’s figure but still pointing to a “marked monthly improvement”, according to IHS Markit, which compiles the data, Yahoo reported.

The headline figure was a shade below consensus forecasts, in part due to a slowdown in new business growth, but the survey showed a particularly strong increase in overall production, while employment growth continued to rise at one of the fastest rates on record.

Andrew Harker, IHS Markit associate director, said: 2017 has been a strong year overall for Spain, with the average PMI reading the best since 2006. The sector therefore is in good shape heading into 2018.

Economists had been expecting a solid reading after flash estimates for the wider eurozone pointed to the strongest manufacturing conditions on record.

The PMI surveys question businesses on indicators such as new orders, pricing pressures and employment growth, in order to gain a picture of the overall health of a sector or economy. The surveys are seen as useful early indicators of economic growth.