2010.11.0204:24:00UTC+00Spanish Oct. Manufacturing Sector Expands

Spanish manufacturing sector expanded in October after a marginal deterioration in the previous month, a survey by Markit Economics showed on Tuesday.

The manufacturing purchasing managers' index or PMI rose to 51.2 in October from 49.6 in the previous month. A PMI reading above 50 suggests expansion of the sector while a reading below 50 suggests contraction.

Manufacturing production slightly increased as new business marginally climbed from the prior month. Meanwhile, new orders grew for the seventh time in eight months and new export orders rose at the joint-fastest pace in six months.

"The Spanish manufacturing sector managed to arrest the slide back into contractionary territory during October. This was largely thanks to export growth, an encouraging development given the importance of export demand as domestic economic conditions remain weak." Andrew Harker, economist at Markit said.

"However, total new business growth will need to be sustained at a faster pace if October's rise in employment, the first for more than three years, is not to be a one off." he added.

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