Spain January manufacturing PMI 49.3 vs 50.9 expected

Latest data released by Markit – 1 February 2021

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Spanish factory activity is seen declining a little in January as output/production and new business observed declines amid the virus pandemic and also due to weather conditions. Markit notes that:

“The Spanish manufacturing sector endued a
challenging start to 2021, with a combination of Storm
Filomena and the ongoing pandemic serving to hamper
both production and levels of incoming new business.

“Adding to the difficult business environment were
again reports of difficulties in sourcing inputs, especially
from Asia where challenges with freight capacity are
exacerbating the pandemic related problems facing
already stretched vendors. Amid reports of stock
shortages as well, price pressures are intensifying with
costs rising to the greatest degree in the past three years.

“Whilst an unfavourable short-term outlook has spilled
over to cuts in employment, there is some positivity to be
gleaned from expectations figures which retain a degree
of optimism consistent with a decent uplift of activity in
a year’s time – but on the proviso of a successful vaccine
rollout and a clear end to the pandemic.”