Manufacturing Remains In Contraction, Pressuring Employment And Prices

The Spanish November manufacturing PMI beat consensus but remained in contractionary territory at 46.3 (vs 45.5 cons; 45.1 prior). Overall, the survey points to further deterioration of economic activity, which is putting downward pressure on employment and prices.

Key notes from the release are:

• "Both output and new orders fell steeply during November"..."Panellists widely linked the deterioration in output to a lack of workloads at their plants".
• "New business inflows were reported to have fallen again"..."product markets both at home and abroad remain characterised by high levels of uncertainty and a lack of risk appetite".
• "Firms also markedly reduced their purchasing activity and cut staffing levels modestly at their plants in November".
• "There were reports of extensive price competition across the supply chain during November. Although vendors were reported to be typically taking longer to deliver inputs, supplier prices were reported to have fallen."
• "A wide range of goods were reported to have fallen in price, including plastics, paper and food. Facing similar challenges of market competition, and with a need to stimulate sales, Spanish manufacturers also reduced their output charges in November".
• The "sentiment regarding the outlook remained subdued".