Spain’s manufacturing PMI fell to 43.5, down from 44.5 in March.There was lots of bad news in the report.
- Marked deterioration in operating conditions
- Rate of contraction in output accelerates
- Further substantial fall in new orders
Operating conditions in the Spanish manufacturing sector deteriorated sharply again in April. New orders fell at a substantial pace, while the rate of contraction in output accelerated. Spare capacity led to further reductions in backlogs of work and employment. Meanwhile, firms lowered output prices in the face of strong competitive pressures and weak demand, despite robust input cost inflation.
The seasonally adjusted Markit Purchasing Managers’ Index® (PMI®) – a composite indicator designed to measure the performance of the manufacturing economy – fell for the third month running in April, posting 43.5, from 44.5 in March. The latest reading signalled the fastest worsening of operating conditions since June 2009.
From economist Andrew Harker:
The acceleration in the rate of contraction in new orders seen in March was followed up by a similar trend in the output index in April. Further price discounting at manufacturers appeared to have a limited impact on sales, with new orders falling at a substantial pace over the month.