Spain Manuf PMI: 23-Year High Despite Supply Constraints

Spanish Manufacturing PMI came in slightly better than expected at 59.4 (59.3 survey, 57.7 prior), which was a 23-year high - but part of the story is that supply-side constraints held that figure back from being even higher.

• From the IHS Markit release: "Difficulties in sourcing inputs meant firms sought to satisfy rising production and order book requirements through the greater utilisation of their inventories of inputs and finished goods. For the latter, the decline was the sharpest since last August."
• On overall activity: "Driving the PMI higher were faster gains in both output and new orders. For sales, the net rise was the sharpest recorded by the survey since December 2006 amid reports of surging demand, both from at home and abroad. New export business increased to the strongest degree for three-and-a half years amid markedly higher demand from neighbouring European countries. Production meanwhile increased to the strongest degree for over 14 years as firms ramped up output in response to increased sales."
• On inflation, note also that both input and output price series recorded all-time highs, with "sharply rising demand for inputs [leading to] considerable inflationary pressures".

IHS Markit, MNI