- Prior was 51.5
- Full report here
Key findings:
- Stronger gains in both output and new orders
- Confidence improved, but staffing levels down slightly
- Price pressures dissipate
Comment:
Commenting on the PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said:
“Spain’s manufacturing industry continued its upward trajectory in October, as reflected in the improvement of the headline PMI. The expansion was underpinned by solid production activity and a pickup in new business.
“Beneath the surface of this encouraging growth, however, some signs of strain are emerging. Export orders declined during the month, with several surveyed firms pointing to a cooling in demand from France. Political instability there appears to be increasingly weighing on economic activity, with knock-on effects for Spanish exporters. In addition, protectionist measures from the United States are likely adding pressure to international order books.
“Labour market signals are also turning cautious: for the second consecutive month, firms have scaled back their hiring activities. This stands in contrast to the order situation and rising backlogs of work. The reluctance to expand headcount seems less structural and more tactical, likely driven by external uncertainties. Should demand remain firm, a rebound in employment dynamics could follow swiftly.
“Meanwhile, both input costs and output prices in the manufacturing sector edged down in October. Companies reported falling prices for a range of materials, which fed through into their pricing strategies. Alongside lower costs, efforts to stimulate demand likely contributed to the modest price adjustments.”
