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Manufacturing activity in Spain expanded in April at its fastest pace in almost two years thanks to an uplift in demand, a survey showed on Thursday, after official data showed surprisingly strong economic growth in the first quarter.
The HCOB Purchasing Managers' Index (PMI) for Spain's manufacturing sector, compiled by S&P Global, stood at 52.2 in April, up from 51.4 in March. The reading was the third consecutive above 50, denoting growth in activity, and the fastest since June 22, when it was 52.6.
The strong April survey came after the country's statistics department INE said earlier this week the overall Spanish economy had expanded a bigger-than-unexpected 0.7% in the first quarter.
Spain outperformed the 20-country euro zone, which grew a scant 0.3% in the quarter.
"Spain continues to shine as the top performer among major euro zone countries," said Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank.
"While we have yet to see a recovery in manufacturing across the euro zone, Spain sustained the growth trend it embarked upon in February and March," he added.
Spanish manufacturing benefited from increasing demand both in Spain and abroad.
The Spanish government expects economic growth to slow to a still solid 2% this year, down from 2.5% last year. (Reporting by Inti Landauro; Editing by Toby Chopra)