Prior 51.4Spanish manufacturing activity continues to pick up with July marking the best increase in new orders for the year so far. Output also rose to a solid degree and job creation was sustained on the month. HCOB notes that:“The latest PMI data once again underscores the resilience of Spain’s manufacturing sector. The headline indeximproved for the third consecutive month, with key sub-indices also posting solid readings. This development aligns with thecyclical upswing recently captured in the HCOB Flash PMI survey for the Eurozone.“At the outset of the second half of the year, order volumes have picked up both domestically and abroad, albeit onlymoderately in each case. Industrial production has now been expanding for three consecutive months and is likely to receivefurther support in the coming months from this improved demand environment. The recent agreement in the US–EU tariffnegotiations should also contribute to short-term planning certainty for firms, although the erratic policy stance of the USadministration continues to cast a shadow over trade-related predictability.“Trends in employment and capacity utilization are consistent with the current growth trajectory. Backlogs of work have beenbuilding up in factories for three months now, while stocks of finished goods are declining. Nevertheless, firms have so farrefrained from significantly increasing their purchases of intermediate goods, suggesting that existing inventories are stillsufficient to support ongoing production growth. Overall, the picture is one of rising output, growing backlogs, fallinginventories, and improving order books. This constellation is mirrored in a growing willingness among manufacturers toexpand their workforce.“Price dynamics shifted in July. After two consecutive months of declines in both input and output prices, both categories arenow on the rise again. This is likely linked to tariff measures that are disrupting international supply chains and exertingupward pressure on prices. In line with this, delivery times for inputs are also lengthening. Survey respondents report thatthey are passing on at least part of the increased costs to end consumers through higher prices.” This article was written by Justin Low at investinglive.com.