The industry in Spain is “slowly recovering” – in fact it is sinking with a slower pace – from the severe blows from the corona crisis as lockdown measures in the country are gradually eased. According to Markit, the contraction of Spanish industrial activity last month was somewhat less than before.
The purchasing manager index for industry in Spain was 38.3 in May, compared to 30.8 in April. A level of 50 or more indicates growth, below that shrinkage. Many companies in Spain are opening their doors again as strict quarantine measures are relaxed. Economists had predicted an average level of 37.8.
However, the damage to the Spanish economy caused by the corona crisis is significant. For example, the Japanese car group Nissan Motor announced last week that it would close its factory near Barcelona, resulting in the loss of approximately 3000 jobs.
Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is oliver.kjeldsen@economicinform.com
