CdM | Growth in Spain’s manufacturing sector accelerated in March for the second month in a row and reached its fastest pace of expansion since June 2022, with a reading of 51.3 points versus 50.7 in February, according to S&P Global Market Intelligence.
A key element was growth in the order backlog, following a nine-month sequence of declines, although the same trend was not seen with respect to external demand, with new orders falling for the 13th consecutive month, and at a stronger pace than in February.
To accommodate rising output levels, firms increased their labour force at the end of the first quarter of 2023, marking the second consecutive increase in job creation and the strongest in just over a year.
On the other hand, March saw the first decline in average operating expenses since July 2020, thanks to relief from commodity and energy prices. However, prices charged continued to rise in March, as companies chose to pass on previous increases in their costs to their customers.
“It is encouraging to see an improvement in Spain’s domestic market performance, with the latest survey data showing the strongest growth in manufacturing output in just over a year, as well as a further improvement in order book volumes,” said Laura Denman, economist at S&P Global Market Intelligence.
