Spain Manufacturing PMIJuly 2023 Data - 2011-2022 Historical - August Forecast

The HCOB Spain Manufacturing PMI fell to 47.8 in July 2023, the lowest so far tis year, compared to 48 in June and below forecasts of 48.3. The reading marks the fourth consecutive month of deteriorating factory activity, as demand remains fragile. New orders contracted for a fourth straight month, new export orders fell at a substantial pace, output volumes were reduced again, purchasing activity fell the most in eight months, and pre-production inventory contracted. Amid reports of falling order books and a reluctance to build stocks, manufacturers diverted resources towards the completion of pending workloads. Goods producers also trimmed payroll numbers for the second month. On the price front, input costs decreased the most since June 2009 on falling raw material and energy costs and output charges declined the most in over three years. Finally, Spanish manufacturing firms maintained a positive outlook with regards to their future output levels.

The HCOB Spain manufacturing PMI in Spain came in at 48.0 in June 2023, down from 48.4 in May and compared with market forecasts of 47.7. The latest reading pointed to the third consecutive month of contraction in the country's manufacturing sector, amid a worsening demand climate. New orders fell for a third month in a row, with the rate of decline being solid overall and the most pronounced since January. Also, new export orders contracted for the 16th successive month. This fed through to a second consecutive reduction in factory output in June though at a marginal pace. As a result, firms scaled back input buying for the third month in a row, and employment levels were cut for the first time since last November, although only slightly. On the price front, both input cost inflation and output charge inflation eased further. Looking ahead, manufacturers remained positive in their outlook, but the degree of confidence slipped to a seven-month low.

The HCOB Spain manufacturing PMI in Spain fell further to 48.4 in May 2023 from 49 in the prior month but above market forecasts of 47.8. It marks the second consecutive month of contraction in the manufacturing sector, though modest overall. The rate of decline in new orders accelerated to the fastest since January amid demand weakness, leading to a fresh contraction in output. Consequently, purchasing activity continued to be reduced and stocks fell for a second month. Meanwhile, employment levels rose for the fourth month in a row, but the rate of job creation was the slowest over this period. In the meantime, there was a sustained improvement in supply conditions, as average lead times shortened for the 3rd month and at a solid pace. On the price front, both input costs and selling prices declined faster. Lastly, manufacturers were upbeat in their expectations for future output, but the degree of confidence weakened from April, dipping to its lowest level since November 2022.