How can PHP code be optimized to reduce excessive spacing and formatting issues between HTML elements?

Excessive spacing and formatting issues between HTML elements in PHP code can be reduced by using PHP's output buffering functions to capture the HTML output and then strip unnecessary whitespace using functions like `preg_replace`. This allows for cleaner and more optimized code without affecting the display of the webpage.

<?php
ob_start();
?>
<!DOCTYPE html>
<html>
<head>
    <title>Optimized PHP Code</title>
</head>
<body>
    <h1>Welcome to our website!</h1>
    <p>This is a paragraph with optimized spacing.</p>
</body>
</html>
<?php
$output = ob_get_clean();
$output = preg_replace('/\s+/', ' ', $output);
echo $output;
?>