Spain’s manufacturing growth eases in August ’24

Spain’s manufacturing sector continued to grow in August, although at a slower pace, with the HCOB Spain Manufacturing PMI registering 50.5, down from 51.0 in July.

This marks the seventh consecutive month of growth, albeit the slowest in this sequence.

New orders saw an uptick, including a rise in export business for the sixth month in a row. However, manufacturing output dipped slightly for the first time since January, and employment levels fell, marking the first decline since January, as companies chose not to replace departing staff.

Business confidence dropped to an eight-month low, with concerns over weakening demand from European markets.

The sector also faced challenges with supply chain disruptions, as lead times worsened for the fourteenth consecutive month, reaching the highest level since February.

On the pricing front, input cost inflation persisted for the seventh month, although the rate of increase slowed to a four-month low.

Output charges rose for the fourth consecutive month, but the rate of inflation was marginal, with some companies offering discounts to maintain sales.

Despite the overall growth, the manufacturing sector faces challenges, particularly in the investment goods subsector, which saw a sharp decline into contraction territory due to uncertainty and cautious investment decisions.

Attribution: S&P Global

Subediting: M. S. Salama