- Prior 52.1
Spain's industrial sector maintained growth conditions in November, albeit at a slower pace than the month before. Output and new orders both continued to expand at a solid pace, with the outlook keeping more positive overall. So, it's still a modestly strong showing by the manufacturing side of things. HCOB notes that:
“The Spanish manufacturing sector extended its growth trajectory in November, albeit at a slightly slower pace. The HCOB headline PMI eased from 52.1 to 51.5 with growth of production and new orders softening and thereby setting the trend for the month. Spain thus appears to be converging towards broader eurozone dynamics, where the Flash manufacturing PMI also signalled slowdown.
“The weakening in international trade seems to weigh on the Spanish manufacturing industry. Over the past six months, domestic new orders increased constantly, while export orders declined in four out of these six months, as the respective index posted below the growth threshold. Panellists corroborate this trend with anecdotal evidence, highlighting weaker international demand. This imbalance has intensified competition for sales, prompting firms to cut prices.
“Interestingly, manufacturers cut their workforce numbers for the third consecutive month, although operating conditions remained broadly favourable. Net layoffs also contrast with rising purchasing activity, suggesting efforts to keep pace with production and order volumes. The caution around hiring reflects the fragile macro environment, characterized by weak economic growth in Europe, competitive pressure from China as well as trade barriers and tense geopolitics. Nevertheless, Spanish manufacturers are optimistic about their future output, as business expectations remained stable slightly above the long-term average.”
