Spanish manufacturing sector remains deep in contraction territory

Spain’s manufacturing sector continued to experience challenging operating conditions during November as output and new orders once again fell sharply, leading to job cuts amid evidence of excess capacity at plants. Confidence in the future remained subdued as firms feared further drops in sales and demand against the backdrop of ongoing global macroeconomic uncertainty. There was some positive news on the inflation front as prices for inputs rose at the slowest rate for two years, although prices related to energy, transportation and raw materials were all reported to have remained at elevated levels.