SPAIN: July Manuf PMI: Lowest In 6 Months But Still In Expansionary Territory

The Spanish July manufacturing PMI remained in expansionary territory, but printed at a 6-month low and below consensus at 51.0 (vs 52.5 cons, 52.3 prior). Bunds were little moved by the release. Although output charges were raised in response to increasing input costs, the emerging softness in demand conditions may temper the extent of this pass-on somewhat. 

Key notes from the release:

• "Demand for goods remained positive, especially from abroad where orders rose modestly and for the fifth successive month, there were reports that market conditions had become less favourable".
• "These trends weighed on purchasing activity which fell marginally for the first time since January".
• "Firms continued to report low stock at vendors and ongoing shipping delays through the Red Sea and Suez Canal".
• "Panellists signalled that costs were broadly rising on the back of increased transportation and metals prices. Output charges were raised in response".