Purchasing Managers Index (PMI) of Spain manufacturing
sector had a tremendous growth in April. London based Markit Economics survey
stated that the expansion in output and new orders has been placed by the improvement
of client’s demand. Market analysts expected the PMI index to reach 54.5 this
month as in march it was about 54.3 but unfortunately it has come down to 54.2
in April.
As many companies in Spain continue to expand their staff levels,
workers feel the benefit of the growth. For the past one and half months the operating conditions was improving. In the upcoming months the production
growth of manufacturing sector in Spain will continue with the combination of increased new business, work in
pipeline and rising employment.
Stronger client demand, firms expanding staffs, higher new orders
and increased production has led to the development. Euro faced weakness which
has resulted in the higher prices for the imported items and increase in the
input costs. Firms continued to
reduce their output prices slightly despite rising input costs.
Andrew Harke, senior
economist at Markit, said that strong rises in workloads continued to impart
capacity pressure on firms, resulting in further solid job creation. The cost
inflationary impacts of the weakness of the euro and by extension the QE
programme are starting to be felt, with manufacturers highlighting rising
prices for imports as the main factor driving cost inflation. Firms have
largely been unable to pass on these increases to clients, however, amid
competitive pressures.
Source: http://wbponline.com/
Source: http://wbponline.com/