- Manufacturing PMI 52.3 vs. 53.0 expected and 54.0 prior.
Key findings:
- Production and new orders rise again, but at slower rates.
- Weaker growth in employment as confidence softens.
- Input cost inflation accelerates to highest since November 2022.
Comment:
Commenting on the PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said: "Uncertainty following European elections is putting pressure on Spanish manufacturers. In June, the index value fell significantly from 54.0 to 52.3. A crucial difference compared to the whole of Europe, however, is that the index in Spain is still in the weak growth area, while it has recently signalled accelerated contraction in the Eurozone according to the Flash PMIs. Production and demand grew in June, but much more slowly than in May. Correspondingly, business expectations have fallen to their lowest level in 2024 and below the historical average."
"Spanish manufacturers are struggling with reaccelerating input prices. Panellists report that shipping costs and a range of raw materials especially were responsible for the reacceleration in input prices. While output prices have risen for the second consecutive month, the dynamic is significantly weaker compared to input prices. Due to market competition, companies only partially passed the higher prices on to consumers."
"The weaker but robust growth in manufacturing is still broad-based. Slower demand growth led to a softer pace in Intermediate Goods and Investment Goods activity growth. In the Consumer Goods sector, however, demand conditions improved, resulting in accelerated growth. Additionally, new employees were hired in all sectors. The intensification of cost pressures was particularly noticeable in the Intermediate and Investment Goods sectors."
