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The Spanish industry stops dry in September due to the German collapse and political uncertainty

2019-10-02T00:32:22.884Z

Since April 2013, almost at the worst of the crisis, there was no such strong contraction of the Spanish industry. What happened this September delves into the trend ne



Since April 2013, almost at the worst of the crisis, there was no such strong contraction of the Spanish industry. What has happened this September delves into the negative trend - it is the fourth consecutive monthly setback - but it is the largest recorded in the last six years.

The Spanish manufacturing activity, according to the PMI index, has deflated in September to 47.7 points, from the 48.8 it marked in August. From the 50 points in this index, it is understood that the sector is in an expansion phase and everything that falls below reflects recession.

The panorama is not exclusive to Spain. The entire Eurozone , according to data collected yesterday by IHS Markit, has seen a significant setback in its industrial activity this September. Above all, Germany , the engine of the euro economy and the one that weighs most on the activity of its partners in the EU, and whose factories already reflect the lowest levels since the worst of the economic crisis.

The prospects, moreover, are not exactly flattering: "The worst is yet to come," said Chris Williamson, chief economist at IHS Markit yesterday. "Future indicators have deteriorated further during the month," he said, "and companies are also pessimistic about the outlook for the next 12 months."

In the specific case of Spain, although the international context has had a great influence, it has also weighed the political and economic uncertainty, according to those responsible for this survey, having caused a very intense fall in new orders for exports; specifically, the largest since July 2012.

This drastic slowdown in industrial activity and new orders has also had a clear reflection on employment, causing manufacturing companies to destroy jobs in September for the fifth consecutive month, although at a slightly slower pace, according to IHS Markit.

According to the criteria of The Trust Project

Know more

  • Spain
  • Germany
  • Macroeconomy
  • economy
  • Markets

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Source: elmuldo

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