Spanish factory activity accelerated in May to 26-month highs, according to PMI

June 3 () –

Growth in Spain’s manufacturing sector activity accelerated to 26-month highs in May, according to the Purchasing Managers’ Index (PMI), which rose to 54 points from 52.2 the previous month, thanks to an increase in levels of production and new orders, although a rebound in inflationary pressures was also observed.

According to S&P Global and Hamburg Commercial Bank, responsible for the PMI survey, an important element in the latest expansion of the Spanish manufacturing sector was the simultaneous increases in production and new orders, whose growth rates accelerated to maximums of twenty-seven and thirty months respectively.

In this sense, manufacturers increased production through an expansion of both purchasing activity and employment, which increased for the fourth consecutive month and marked the highest level since February 2022.

On the price front, there were signs of a pick-up in inflationary pressures in May as input cost inflation rose to its highest level in 15 months and companies raised their charged prices in response.

“Price pressure in the Spanish manufacturing sector has dramatically re-emerged in May,” said Jonas Feldhusen, junior economist at Hamburg Commercial Bank, noting that despite higher input costs, companies were able to make an impact. these to final consumers, “which caused the first increase in prices charged in fourteen months.”