The rate of job creation quickened to a near-record high in May as the Spanish manufacturing sector experienced further strong growth of output and new orders. Meanwhile, there were signs that inflationary pressures may have peaked as both input costs and output prices rose at slower rates during the month.

The headline PMI rose to a four-month high of 55.4 in May, up from 54.5 in April. The reading signalled a further marked monthly improvement in the health of the sector, and extended the current sequence of strengthening business conditions to 42 months.