Spanish manufacturers recorded a further marked improvement in business conditions at the end of the first quarter of the year. Although the rate of output growth slowed from February, it remained marked amid another sharp increase in new orders. The easing in the rate of expansion of output contributed to one of the strongest rises in backlogs of work since the series began, while supply issues were again highlighted by a marked lengthening of suppliers' delivery times.

The PMI was at 54.8 in March, down from 56.0 in February, but still pointing to a marked improvement in business conditions. Manufacturing firms registered a