Spanish Manufacturing Activity Sees Strong Growth in October

MADRID (Reuters) – Spanish manufacturing activity picked up again in October, showing its strongest growth in more than two years, with output, new orders, and new hiring all rising, a survey showed on Monday.

The HCOB Purchasing Managers' Index (PMI) for Spain's manufacturing sector, compiled by S&P Global, rose to 54.5 in October from 53.0 in September. This marks the ninth consecutive reading above the 50 mark that separates growth from contraction and the highest reading since February 2022.

"Manufacturing companies are looking to grow their workforce, and there is optimism for a stable economic environment, supported by the ECB's easing measures," Jonas Feldhusen, junior economist at Hamburg Commercial Bank, noted in the S&P Global report.

The growth was broad-based, with new export business increasing at the fastest rate in almost three years. As companies produced more and hired more, business confidence rose to a five-month high.

The October PMI data suggest that the strong economic growth recorded in the third quarter has continued into the next one.

Spain's statistics department recently stated that the economy expanded at a faster-than-expected 0.8% pace in the third quarter, compared to 0.4% for the eurozone as a whole, with an annual growth rate reaching 3.4%.

The government has also upgraded its growth forecast for 2024 to 2.7%.