Spain’s manufacturing sector has generated its highest output in three months, with a general pick-up in momentum despite long backlogs, research house IHS Markit said today.
April’s purchasing managers’ index for the sector – an assessment of health in hiring, output, inventories and other factors – produced a reading for the sector of 54.5, up from 53.9 in March and a shade above analysts’ forecasts. That was despite “signs of raw material shortages impacting the sector, leading to longer suppliers’ delivery times, higher backlogs of work and a drop in stocks of purchases”, Markit said.
Business conditions have now brightened for 41 months in a row.
Andrew Harker, senior economist at IHS Markit said:
There was a welcome tick-up in growth in the Spanish manufacturing sector during April, after weaker rises in output and new orders had been seen throughout the first quarter of the year. This should help to support confidence that the current sequence of growth can be sustained as the year progresses.