Uncertainty following European elections (Il Sole 24 Ore Radiocor) - London , 01 Jul - In June, Spain's purchasing managers' index for the manufacturing sector fell to 52.3 from 54.0, signalling an improvement in operating conditions for the fifth consecutive month although with a slower and more modest rate of expansion, according to data released by S&P Global and Hamburg Commercial Bank.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

"Uncertainty following European elections is putting pressure on Spanish manufacturers," said Jonas Feldhusen, junior economist at Hamburg Commercial Bank. "In June, the index value fell significantly from 54.0 to 52.3. A crucial difference compared to the whole of Europe, however, is that the index in Spain is still in the weak growth area, while it has recently signalled accelerated contraction in the Eurozone according to the Flash PMIs. Production and demand grew in June, but much more slowly than in May.

Correspondingly, business expectations have fallen to their lowest level in 2024 and below the historical average.

"Spanish manufacturers are struggling with reaccelerating input prices. Panellists report that shipping costs and a range of raw materials especially were responsible for the reacceleration in input prices. While output prices have risen for the second consecutive month, the dynamic is significantly weaker compared to input prices. Due to market competition, companies only partially passed the higher prices on to consumers.".

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(RADIOCOR) 01-07-24 09:26:01 (0154) 5 NNNN