Worse than expected.Spain’s May manufacturing PMI fell to 42.0 from 43.5 in April.
Economists were looking for the number to fall to 43.0.
“Things went from bad to worse in the Spanish manufacturing sector during May,” wrote economist Andrew Harker. “Rates of decline in output and new orders are now faster than at any time in the past three years.”
- PMI drops amid faster falls in output and new orders
- Further steep reduction in employment
- Input cost inflation slows sharply
More from Markit:
The decline in the Spanish manufacturing sector intensified again in May as both output and new orders fell at rates only exceeded by the 2008/09 downturn. A lack of demand led firms to reduce their input buying, which in turn subdued pricing power at suppliers and brought cost inflation down markedly. Meanwhile, employment continued to decline at a substantial pace.
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This should be ugly.
Economists are expecting Spain’s May manufacturing PMI number to come in at 43.0, down slightly from 43.5 in April.
A reading below 50 signals contraction in the industry.