Spain: Manufacturing PMI falls in July
The HCOB Spain Manufacturing Purchasing Managers’ Index (PMI) fell to 51.0 in July from 52.3 in June. As a result, the index remained above the 50.0 no-change threshold but signaled a softer improvement in manufacturing-sector operating conditions compared to the previous month.
In July, the Spanish manufacturing sector saw a slowdown in production growth due to a slight decline in new orders—the first since January. Despite a modest rise in foreign orders, overall market conditions were reported to be less favorable, affecting purchasing activities and leading to a marginal decrease for the first time since January. Firms opted to use existing inputs, reducing their inventories of purchases significantly. Delivery times for inputs worsened, continuing a trend of over a year, exacerbated by low stock at vendors and ongoing shipping delays, particularly through the Red Sea and Suez Canal.
On the price front, input costs rose at a marked rate, albeit slower than June’s 19-month high, driven by increased transportation and metal prices. Meanwhile, output charge inflation accelerated, reaching its highest level since February 2023. Lastly, firms remained optimistic, though at the lowest level in the year to date.