Spain June manufacturing PMI 52.6 vs 52.1 expected

• Prior 53.8

Despite beating estimates, the reading is the weakest in a year-and-a-half as manufacturing output growth slowed and order books fell slightly. Looking at the details, supply-side constraints persisted, although to a lesser degree than in recent months. Meanwhile, inflation remains high but maintained its recent downward trend. S&P Global notes that:

“Spain’s manufacturing sector experienced a slowdown in growth during June, with a drop in new orders the most notable feature of the latest survey. Whilst instability in Europe due to the ongoing war in Ukraine was a factor hurting demand, long-running inflationary pressures – which remain elevated – are also biting, weighing on sales and market activity.

“The latest data will therefore add to very real concerns of stagflation, although perhaps those looking for some positivity in the numbers will highlight notable reductions in both input and output measures of price inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term since May (though both remain historically elevated). A less acute deterioration in vendor performance was also signalled, adding to hopes the supply-side constraints that have plagued the sector during the past couple of years are also easing.”