Spain's PMI slows, manufacturing strengthens, employment up

The HCOB Spain Composite PMI fell to 55.2 in October 2024, down from 56.3 in September, indicating strong but slowing private sector growth.

Spain's PMI slows, manufacturing strengthens, employment up

Manufacturing saw the most significant expansion since February 2022, rising to 54.5 from 53, while the service sector's growth softened to 54.9 from 57. Despite the slowdown in services, new business continued to grow solidly, encouraging further hiring. Employment levels rose at their most robust rate since April 2023, reflecting confidence in continued demand. However, backlogs of work increased, suggesting that firms were struggling to keep up with demand. On the pricing side, input cost inflation increased, primarily due to substantial wage hikes in the service sector. As a result, output price inflation also accelerated during October, although manufacturing output charges were slightly reduced.

Businesses face cost pressures but remain optimistic about future growth

This highlights the ongoing pressures on businesses to balance rising costs with competitive pricing while they continue to expand their operations amid a mixed economic backdrop. Despite the challenges, business sentiment remains broadly positive, with firms optimistic about future growth prospects.