Spain Manufacturing PMI May 2008

Spain's manufacturing activity continued to decline in May, and, more importantly, it continued to decline at an ever increasing pace. This is what I mean by problem in the financial sector steadily spilling over into the real economy.

The Spanish manufacturing sector purchasing managers' index (PMI) fell to 43.8 in May from 45.2 in April, the fourth consecutive drop, market research group NTC said. The figure is the lowest in six and a half years, NTC said.

'The Spanish manufacturing sector continues to fall due to the end to the construction boom. May's PMI figures show a record drop in new orders as businesses and Spanish consumers react to the new economic climate,' economist at NTC, Nathan Carroll said.

A reading above 50 indicates that the manufacturing sector is generally expanding, while a reading below 50 suggests it is contracting.