• Prior 57.1

The reading still points to a decent expansion in Spain's manufacturing sector but there are some key challenges. Supply constraints and surging price pressures continue to be a thorn in the side, resulting in slower growth in new work, persisting capacity pressures, and a sharp rise in backlogs. Markit notes that:

“Supply-side challenges persisted during December and continued to have a major impact on a variety of metrics tracked by the PMI survey.

“Prices indices remained extremely high, with firms signalling severe inflationary pressures that were having a detrimental impact on client demand. New orders subsequently rose at a more modest rate.

“Moreover, input shortages placed some restriction on productive capabilities, and firms continued to scramble to source inputs and bolster stocks wherever possible. Such pre-purchasing of goods is likely exacerbating pressure on already strained supply-chains.

“These difficulties continue to undermine confidence, although firms believe that over the coming year underlying trends in output and demand will be positive.”