Latest data released by Markit – 1 June 2021
- Prior 57.7
Spanish manufacturing activity expanded at its quickest pace in 23 years as order books swelled and production rose sharply amid a turn in the economic situation in the region. The headline also marks a fourth consecutive monthly expansion in manufacturing.
Markit notes that:
“May was another stellar month for the Spanish
manufacturing sector, with both new orders and output
rising at rates not seen since before the global financial
“Growth is being driven by the ongoing reopening of
economies and continued strength in demand, both
from at home and from European neighbours.
“Production growth would likely have been higher if it
were not for capacity constraints and ongoing difficulties
in sourcing a wide range of inputs such as plastics,
metals and timber.
“Whilst it is hoped – and expected – that these supply side challenges will eventually abate, such shortages are
inevitably leading to acute inflationary pressures. And
with companies buoyed by the relative strengthening of
their own pricing power in recent months, factory gate
prices are also rising at an unprecedented rate.”