Latest data released by Markit – 5 May 2021
While missing on estimates, the reading here is still a positive one as it beats out the March performance. The Spanish manufacturing sector is still showing optimistic signs with new orders and production being up sharply.
Input prices continue to climb as well, so that puts pressure on higher prices in general – which should feed to consumer inflation in the months ahead. Markit notes that:
“Spain’s manufacturing sector continued to boom during
April, with output and new orders again recording stellar
gains, albeit at slightly slower rates than in March.“With demand strengthening and expected to continue
to do so in the months ahead as economies reopen
further, any challenges for the sector are predominately
stemming from the supply-side, with delays in the
delivery of inputs hitting broadly unprecedented rates
and placing a constraint on growth.“Firms are subsequently looking where possible to
strengthen their pre-production inventory levels to avoid
any further delays but are nonetheless buffering up
against capacity limits and orders are starting to back
up.“This is benefiting workers, with the demand for labour
increasing, and jobs growth accelerating noticeably.
However, less positive is the build-up of price pressures:
both input costs and charges rose sharply again in April
as both suppliers and manufacturers took advantage of
strong market demand.”