Spain: Manufacturing sector in April: growth and challenges
The HCOB Spain Manufacturing Purchasing Managers’ Index (PMI) rose to 52.2 in April from 51.4 last month. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in manufacturing sector operating conditions compared to the previous month.
April’s PMI was driven by accelerated increases in production and new orders, with growth rates reaching their highest in over two years. Despite this positive trend, backlogs of work increased significantly, indicating capacity pressures, yet firms continued to bolster staffing numbers to meet demand.
Price pressures in the Spanish manufacturing sector picked up slightly, with input price inflation reaching its highest point in over a year. However, competitive pressures and efforts to stimulate demand led to a further reduction in output charges. Despite these cost pressures, firms’ pricing power remained limited, reflecting ongoing competitive pressures and a strategic focus on stimulating sales through lower output charges.