Spain’s Manufacturing Activity Recovers



Spain’s manufacturing data

According to Markit Economics, Spain’s manufacturing PMI (purchasing managers’ index) score rose to 56.1 in November 2017 from 55.8 in October 2017. Although the PMI figure didn’t beat the preliminary estimate of 56.5, it marked the fastest expansion seen since February 2007.

Spain’s stronger manufacturing PMI performance was mainly due to increases in the following:

  • improved production output
  • new business and export orders
  • manufacturing sector employment

ETF performance in November

The iShares MSCI Spain Capped ETF (EWP), which tracks Spain’s performance, fell 0.6% in November 2017, and the Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (HEDJ) (EZU) (IEV) economic performance, fell 0.1%. Major Eurozone economies, such as Germany (EWG), France (EWQ), and the Netherlands, are showing improved economic activity, and Spain is recovering gradually, which may signal opportunities in European equity markets. In the next part of this series, we’ll analyze the US GDP in 3Q17.

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