July 01, 2024 07:29 GMT
June Manufacturing PMI: Competition Limits Input Cost Passthrough
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The Spanish manufacturing PMI remained in expansionary territory in June at 52.3, but was slightly weaker than consensus (52.9) and May’s reading (54.0).
Although input costs accelerated in June, competition amongst manufacturers limited passthrough. Additionally, the report notes that political uncertainty (likely from neighbouring France), served to limit some new business.
Key notes from the release:
- “Panellists noted higher demand from clients, with sales supported by positive commercial campaigns – both at home and abroad. Political and economic uncertainty did however serve to limit overall new business wins, according to panellists”.
- “Companies recruited additional workers to serve both current and expected production”.
- “Average lead times deteriorated”… “due to a mixture of low stock at suppliers and ongoing shipping delays through the Suez Canal”.
- “Sharp and accelerated increase in input prices”… “steepening shipping costs, plus rising prices for materials like copper, steel, paper, and cardboard”.
- “Efforts to pass on higher costs to clients were generally limited however by market competition”.
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