Spanish factory activity growth slows in July, remains strong -PMI
MADRID, Aug 2 (Reuters) - Spanish factory activity grew quickly in July, though at a slower pace than during the previous two months, a survey showed on Monday, as looser COVID-19 restrictions led to a surge in demand.
IHS Markit's Purchasing Managers' Index (PMI) for manufacturing slowed to 59.0 last month from 60.4 in June and 59.4 in May, which were the highest levels since April 1998. Figures above the 50.0 mark indicate expansions in activity.
"July´s data again provided a positive picture overall of manufacturing growth, with the sector again supported by strong demand trends and the ongoing reopening of the economy," said Paul Smith, an economist at IHS Markit.
Troubles with supply chains, especially by sea, and raw material price increases are slowing demand from abroad, the survey showed.
The Spanish economy expanded a solid 2.8% in the second quarter of this year from the previous period thanks to the easing of COVID-19 restrictions. The economy had shrunk 0.4% in the first quarter after increasing infections forced renewed restrictions.
The government expects the economy to grow 6.5% this year after 2020's record 10.8% contraction. (Reporting by Inti Landauro; Editing by Toby Chopra)
