There were further signs of growth easing in the Spanish manufacturing sector during May, with weaker increases in output and new orders recorded. That said, the rate of job creation accelerated and business confidence remained elevated. Meanwhile, the rate of input cost inflation was sharp and output prices rose at the fastest pace since January.

The headline IHS Markit Spain Manufacturing PMI - a composite single-figure indicator of manufacturing performance - dipped to 53.4 in May from 54.4 in April. Although signalling a solid strengthening in the health of the sector, the rate of improvement was the weakest since August last year. Business conditions have strengthened on a monthly basis throughout the past four-and-a-half years.