Link Securities | The factory activity index, PMI manufacturing, for Spain, compiled by Markit, came in at 47.7 points in September, up from 46.5 points in August, which was also the reading expected by the analysts’ consensus. It should be recalled that a reading above 50 points indicates an expansion in activity compared with the previous month, while a reading below this level indicates a contraction in activity. Thus, the actual reading marked the sixth consecutive month of contraction in factory activity, amid unfavourable market conditions and high prices. Production and new orders continued to fall, albeit at slower rates.
Meanwhile, the rate of job losses was the sharpest and deepest since October 2022, as a result of lower sales and difficulties in finding workers to replace those leaving. In addition, overall purchasing activity declined for the sixth consecutive month, and severely so. On the price front, input prices fell for the seventh consecutive month, although the latest decline was the smallest since March.