Spanish manufacturers continued to record marked growth of output and new orders during February, helping to generate a further sharp rise in employment. There was ongoing evidence of strengthening price pressures, with some firms reportedly building inventories in order to protect against further increases in raw material costs in coming months.

The headline PMI registered at 54.8 in February, down from 55.6 in January but still signalling a solid monthly improvement in the health of the manufacturing sector. Business conditions have now improved in each of the past 39 months.