Signs of capacity pressures led firms to increase employment again during the month. Meanwhile, the recent weakness of the euro against the US dollar led to an accelerated rate of cost inflation.
“Momentum was maintained in the Spanish manufacturing sector in April, according to the latest PMI figures. 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,” said Andrew Harket, senior economist at Markit and author of the report.