Factory activity in Spain contracted for the eighth consecutive month in November as sales to and orders from domestic and foreign customers fell amid political as well as economic uncertainties, a survey showed on Thursday.
The HCOB Purchasing Managers' Index (PMI) for Spanish manufacturing compiled by S&P Global was 46.3 in November, a tad higher than the 45.1 reported in October, but lower than the 47.7 in September. The 50 mark separates growth from contraction.
"Panellists widely linked the deterioration in output to a lack of workloads at their plants. New business inflows were reported to have fallen again," S&P Global said in its report.
As a result, companies reduced staffing for the fourth month in five, S&P Global said.
The growing competition in the different markets is driving factory gate prices down.
Despite the manufacturing sector's recent weakness, Spain's gross domestic product expanded a faster than expected 0.3% in the third quarter, meaning Spain is growing faster than most large European Union economies.
The government expects a solid 2.4% economic growth this year.
S&P Global's sister survey on services, which account for about half of the economy, has shown almost constant growth so far this year. (Reporting by Inti Landauro; Editing by Toby Chopra)