Manufacturing output in Spain accelerated in the month of October hitting the highest levels for a decade, according to the PMI. This rose to 55,8 points in October from 54,3 in September, noting the “negligible impact” of the political situation in Catalonia, although political uncertainty could be a drag on future expectations.
“The political situation in Catalonia had a negligible impact on manufacturers’ operations in October. But the weaker sentiment with respect to expectations for the next twelve months was attributed in part to the current political uncertainty,” Andrew Harker, associate director at IHS Market flagged.
During October, the pace of growth in new orders accelerated for the second consecutive month, recording its best reading since January. So this means the fastest increase in 5 months in manufacturing production, boosting the amount of ‘stocks’ of finished products, which rose at the fastest pace since November 2015.
This increased workload encouraged companies to hire more staff and increase their purchases, which meant there was an “intense” rise in hiriing last month.
The increased cost of raw materials brought with it a sharp rise in prices charged, while business sentiment remained positive. That said, confidence fell to a two-year low “due to concern over the political situation in Catalonia.”