Growth momentum in the Spanish manufacturing sector improved in February, with both output and new orders rising at faster rates than at the start of the year. Linked to this were further sharp increases in employment and purchasing activity. Meanwhile, higher raw material costs resulted in a further sharp increase in input prices, with output charges also continuing to rise.

At 56.0 in February, the PMI was at a level indicative of a strong monthly improvement in the health of the manufacturing sector. Moreover, the index rose from 55.2 in January and signalled the most marked strengthening of business conditions in three months.