Latest data released by Markit - 1 September 2020
- Prior 53.5
That is a bit of a disappointing take, but the slowing recovery pace was already documented in the preliminary French and German readings from two weeks ago.
That said, the more subdued PMI readings today and inflation data later could lend conviction for buyers to go with profit-taking as EUR/USD nears the 1.20 handle as well.
Markit notes that:
"The recovery in the Spanish manufacturing sector paused in August, failing to build on the return to growth seen in July. A lack of growth in new orders was the main cause for concern amid wavering demand, though firms are still hopeful that gradual improvements will take place over the coming year.
"There was little cause for optimism on the jobs front as employment was cut at a sharper pace and data suggested that firms were still able to deal comfortably with current workloads.
"The latest PMI data show that any economic recovery in the sector is predicated on success in suppressing COVID19, with the recent increases in virus cases in Spain providing the backdrop for August's manufacturing setback. Any signs of falling case numbers will provide assurances that the recovery can get back on track."