AI Data Insight
Spain's latest Manufacturing PMI dropped to 51.2, down from the previous 51.7 and falling short of the market expectation of 52, indicating a slowdown in expansion momentum. Geopolitical conflicts in the Middle East have triggered supply chain delays and soaring input costs, leading to another decline in new orders. In the short term, high prices and the risk of supply chain disruptions will continue to squeeze corporate profit margins. In the medium term, attention should be paid to the potential impact of sticky inflation on ECB policy and end-user demand.