Strong Spanish manufacturing PMI in June – above German, French and Italian

• Spanish manufacturing PMI was stronger than expected in June and the Spanish figure was the highest among the four biggest euro countries. This followed as the Spanish figure has trended upwards since November 2013 while the German manufacturing PMI has followed a downtrend during 2014, the French has declined since March 2014 and the Italian has moved sideways during 2014.

• The Spanish manufacturing PMI rose to 54.6 from 52.9 in May and is now at the highest level since June 2007.

• The improvement in Spanish manufacturing PMI confirms our view that the Spanish economy will continue to improve and both the service and manufacturing PMIs now suggest GDP growth above 0.5% q/q.

• The details were also good as new orders increased to 56.3 from 53.4 implying the index is now at the highest level since April 2007.

• New exports orders rebounded to 56.7 in June from 53.3 in May. It signals that the negative impact from global weakness is about to fade and it points to an improvement in export growth.

• The employment index increased to 53.0, which is the highest level since July 2007. It also confirms that the unemployment rate will continue to decline in Spain.

Spanish man. PMI the highest among the four biggest euro countries

Spanish PMIs point to GDP growth above 0.5% q/q

New export orders suggest higher growth in exports

The employment index at the highest levels since July 2007