- Manufacturing PMI 53.0 vs. 50.2 expected and 50.5 prior.
Key findings:
- Solid gains in both output and new orders signalled.
- Return to growth in employment.
- First cut in output charges since April.
Comment:
Commenting on the PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said:
"Spain is and remains the outlier among the major Eurozone countries. The sentiment in Spain's manufacturing sector has surged, with an index of 53.0 points indicating accelerated growth in September. These are indeed surprising developments, as the trend in previous months had clearly pointed towards stagnation.
However, both orders and production have notably improved this month—contrary to my August forecast. While industrial sentiment in Germany and France remains poor, anecdotal evidence suggests that order growth stems from increased demand from the UK. Cost pressures in Spain's manufacturing sector has eased significantly.
Input inflation was modest in September, reaching its lowest level since February. The slowing momentum of input costs, combined with rising inventories and heightened competition, has led to a marked drop in selling prices. Business confidence has brightened significantly in September. After falling below the historical average in August, future expectations have seen a strong rebound.
Key reasons for this improvement include new product launches and the hope for more stable political conditions. With expanded production and rising optimism, Spanish manufacturers have also increased their staffing levels. This positive trend indicates that companies are now approaching the coming months with greater confidence."
