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PMI in Spain highest since February 2007

Spanish manufacturing
Spain   IHS Markit Spain Manufacturing PMI

Business conditions in the Spanish manufacturing sector improved to the greatest extent in close to 11 years in November.

Output growth hit a two-and-ahalf year high amid another marked increase in new orders.

In fact, new export business rose at a nearrecord pace.

This was also the case with regard to employment, which increased at the fastest rate since April 1998.

Meanwhile, purchasing activity rose at one of the fastest rates to-date.

This increase in demand for inputs contributed to raw material shortages, in turn resulting in delays to deliveries from suppliers.

Input costs also continued to rise sharply over the month.

The headline IHS Markit Spain Manufacturing PMI is a composite single-figure indicator of manufacturing performance.

It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.

Any figure greater than 50.0 indicates overall improvement of the sector.

The PMI rose to 56.1 in November from 55.8 in October, the highest reading since February 2007.

Operating conditions have now improved on a monthly basis throughout the past four years.

The rate of growth in manufacturing output quickened for the third successive month in November, reaching the strongest since May 2015.

The sharp rise in production resulted in a third successive monthly increase in stocks of finished IHS Markit Spain Manufacturing PMI v Official data goods, the fastest in nine years.

Production growth largely reflected higher new orders.

Total new business increased markedly, albeit at a slightly reduced pace.

Meanwhile, the rate of expansion in new export orders was among the fastest since the survey began in February 1998.

Employment growth was also among the sharpest so far, only bettered in the opening three months of the survey.

Extra staff were reportedly hired in response to rising workloads and the prospect of further growth in coming months.

There were signs of capacity pressures throughout the sector in November, despite strong hiring.

Manufacturers saw their backlogs of work increase to the greatest extent in six months.


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