Spain August manufacturing PMI 49.5 vs 50.3 expectedPrior 50.2
It’s not a good look in August for Spain manufacturing activity, with both output and new orders declining. The worsening business activity reflected some concerns over rising prices,
especially for energy, with latest data showing a noticeable
acceleration in overall input cost inflation.
Meanwhile, supply-side
challenges also remained evident, with typical lead times for
the delivery of inputs again deteriorating to a considerable
degree.
Circling back to the drop in production, that is also in part due to the usual seasonality related to summer
factory shutdowns. However, the survey notes that the drop was primarily linked by panellists to a modest decline in new work
amid reports of stagnant market conditions and demand. So, there’s that.
S&P Global notes that:
“August proved to be a somewhat challenging month
for Spain’s manufacturing sector, with output and new
orders declining on the month amid stagnant market
demand. Weakness was especially prevalent amongst
capital goods producers as firms continue to struggle to
secure investment and commitments to new contracts
given the uncertainty that exists within the marketplace.
“This uncertainty can be linked to the rollercoaster in
price setting that firms continue to experience in 2026.
With energy costs picking up again in August, input
price inflation has once again surged higher, placing
noticeable pressure on margins and meaning confidence
in the outlook remained subdued. No wonder firms
remained reticent to hire or buy-in new inputs, with both
employment and purchasing activity subsequently cut
over the month.”
This article was written by Justin Low at investinglive.com.