Manufacturing PMI 49.7 vs 51.0 expectedPrior 51.2That's a notable miss on estimates as Spanish manufacturing activity slumped to a marginal contraction in June. A steeper drop in new orders and lower output underpins the deterioration of manufacturing sector. Meanwhile, high prices and unwinding of client stockpilingleads to lower sales.The Middle East conflict continues to weigh heavily on market demand, leading to an accelerated andmarked drop in new orders. As such, production also fell for the first time in three months.Besides that, S&P Global highlights the pain points on supply chains and prices too:"Regarding supplier performance in June, the impact onsupply chains of the Middle East conflict was again keenlyfelt. Whilst easing on May’s recent record, vendor deliverytimes deteriorated to a historically marked degree. Firmsreported that supply chains remained under noticeablestress, with shipping delays and stock shortages at vendorscommon.Supplier prices were also reported to be still rising in Juneand meant that cost inflation was still elevated, despiteeasing quite noticeably on May’s four-year high. The impactof elevated oil and gas prices due to the conflict in the MiddleEast was reported to be pushing up prices for a wide range ofgoods from suppliers. Similarly, manufacturers themselveschose to increase their own charges, with the latest datashowing the steepest rise in output prices since October2022."That's not a good look if the trend catches on elsewhere in the region, which is likely, and carries over into the summer. Stagflation much? This article was written by Justin Low at investinglive.com.