Spain manufacturing PMI in March 2018
According to a report by Markit Economics, Spain’s manufacturing PMI stood at 54.8 in March as compared to 56 in February 2018. The March PMI figure met the preliminary market estimate of 54.8, but it was the lowest expansion in factory activity since October 2017.
Spain’s March manufacturing PMI was mainly affected by the following factors:
- Production volume and output witnessed weaker improvements in March as compared to February 2018. Similarly, the factory activity also slowed in that month.
- Both new business orders and export orders also showed a weaker improvement in March 2018.
- The employment in the manufacturing sector also showed a softer rise in that month.
Performance of various ETFs in March
The iShares MSCI Spain Capped ETF (EWP), which tracks Spain’s performance, fell 1% in March 2018. However, the Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (IEV) (N100-INDEX) economic performance, rose 0.3% in March 2018.
The weaker manufacturing PMI in March was mainly due to the slower client demand both from domestic and overseas markets. Consumers’ purchasing activity also fell marginally in that month. The rising concern about the global trade war affected international demand as well as the country’s export orders.
In the next part of this series, we’ll analyze the final manufacturing PMI of the Eurozone in March 2018.