Latest data released by Markit – 1 April 2021
Much like the rest of the region, Spanish manufacturing activity jumped higher last month with output improving by its quickest pace since the end of 2017. Overall new orders also grew at its sharpest in over four years, boosting the headline reading.
Markit notes that:
“Spain’s manufacturing economy enjoyed a stellar
March, with output growth hitting its best for over
three years on the back of sharply rising domestic and
international demand for manufactures.
“The sting in the tail of this sharp upturn however is
that supply chains continue to be stretched, with firms
reporting near record deteriorations in delivery times
amid reports of a wide range of goods being in short
supply. There was subsequently evidence that such
delays were beginning to hamper output schedules, with
firms having to, where possible, utilise stocks to keep
production lines running.
“Input shortages are also continuing to fuel noticeable
price increases, with both input costs and output
charges rising at the strongest rates in a decade. As long
as supply chains remain stretched, and with growth set
to continue – expectations strengthened further in March
– prices appear set to continue to rise for some time to
come raising a real risk of a spillover into consumer price
indices in the coming months.”