Spanish manufacturing activity eases in May as safety stock surge from April unwinds

May manufacturing PMI 51.2 vs 52.0 expectedPrior 51.7April was defined by firms rushing orders to stock up, so naturally May is showing some of that unwinding as new orders placed with manufacturers declined. The standout details from the report though are that supply chain delays are intensifying as product shortages were reported, and also input prices rising further to a greater degree.The former sees a further deterioration in vendor times, which was the greatest seen in four years, as the Middle East conflict continues to weigh. The report points out that: "Panellists noted that delays on maritime routes were considerable, product shortages widespread and prices for inputs, especially for oil and oil-derivatives were rising precipitously."And on the inflation front: "Prices paid for inputs by manufacturers rose to the greatest degree for four years and amongst the strongest rates in the survey history. The acceleration in inflation seen in the past three months has also been unprecedented since data were first collected in early 1998."As higher input cost inflation becomes more embedded, selling charges also increased on the month as firms look to try and protect their margins further. Of note, the degree of charge inflation remains elevated in the context of the survey history even if a little softer than April’s near three-and-a-half year high. This article was written by Justin Low at investinglive.com.