- Prior 46.3
The downturn in Spain’s manufacturing sector continues to end last year with both output and new orders falling again. The good news at least is that firms are anticipating a rebound in output for this year, although optimism remains relatively low when put into context to the survey’s history. But at least there was another drop in input prices, making it the tenth month in a row that a decline was observed. HCOB notes that:
“While many people were hoping for ‘El Gordo’ lottery in December, manufacturers remained mired in the doldrums. The
headline PMI dipped further from an already low level to 46.2, propelled by a swifter decline in new orders and an
accelerated rate of destocking.
“The Spanish manufacturing sector wraps up the year on a sombre note. Our nowcast model, incorporating PMI figures for
the sector, suggests a contraction in output for the fourth quarter. Key forward-looking indicators, such as new orders and
backlogs of work, have declined at a faster rate than the previous month. The outlook for the beginning of next year appears
to be rather lacklustre.
“Despite the overall negative signals for Spanish manufacturers, there’s a resilience present as certain indicators suggest
there’s no sign of capitulation. Both output contraction and export orders have slowed their decline, offering rays of hope.
Additionally, a mild increase in optimism is observed among most companies regarding their output in the coming 12
months.
“Within the manufacturing sector, consumer goods emerge as a stabilizing force. This segment continues to exhibit growth in
terms of output, employment, and new orders. In stark contrast, intermediate and investment goods face significant
challenges in these categories. These segments hold a dominant position within the manufacturing sector and their weak
performance subsequently could not be compensated by consumer goods in December.”