Another High For Manuf PMI, But Price Pressures Persist

Spanish manufacturing PMI was a little stronger than expected in June, at 60.4 (59.6 exp., 59.4 prior). This was the highest reading going back to May 1998, and came amid "surging levels of orders and demand, especially from sectors related to hospitality", per the IHS Markit report.

• From the report: "Underpinning the latest PMI reading was the sharpest rise in production for over 23 years. Rising output has now been recorded in each of the past five months and was again underpinned by sharply rising levels of incoming new orders. Although easing since May's near 15-year high, growth in new orders during June was again considerable amid widespread reports of firmer demand."
• Supply chain pressures and strong demand continued to boost inflation concerns: "Panellists reported a considerable excess of demand over supply on global product markets...Unsurprisingly, this resulted in another round of considerable input price inflation. June's survey marked another record high for cost increases (data were first collected in February 1998)... output charges were raised at a series record pace as firms sought to take advantage of positive demand conditions."

Source: IHS Markit, MNI