September saw growth momentum in the Spanish manufacturing sector recover somewhat as output, new orders and employment all rose at sharper rates than in August. Firms continued to display a preference for stock reduction, however. On the price front, the rate of cost inflation picked up but competitive pressures meant that output prices were reduced marginally.

The PMI rose to 52.3 in September, up from 51.0 in August and the highest since April. The reading signalled a solid monthly improvement in the health of the sector. Business conditions have now strengthened in each of the past 34 months.