Spain’s Private Sector Expands Faster in December

The HCOB Spain Composite PMI fell to 52.9 in January 2026 from 55.6 in December, marking the slowest pace of growth since last June. Private sector new work expanded at a reduced rate, weighed down by a decline in manufacturing new orders and slower growth in services activity. Employment, however, rose more sharply, driven by strong gains in the services sector. Input cost inflation accelerated to its highest level since August, while output prices increased at the fastest pace in three months. Business confidence in the year-ahead outlook strengthened to a 12-month high.

The HCOB Spain Composite PMI rose to 55.6 in December 2025 from 55.1 in November, pointing to the 25th consecutive month of growth across the Spanish private sector, and at a robust pace. The divergence between sectors widened, as services gained momentum (PMI at one-year high of 57.1 vs 55.6 in November) but manufacturing slipped back into contraction territory (PMI at 49.6 vs 51.5). New business and employment grew in services but contracted in manufacturing, while falling backlogs in both sectors suggest spare capacity across the private sector. Meanwhile, confidence strengthened to an 11-month high in December despite input cost inflation accelerating to its highest since September last year.

The HCOB Spain Composite PMI slipped to 55.1 in November 2025 from 56.0 in October but continued to signal a robust expansion in the private sector. Growth in services eased yet remained strong (55.6 vs. 56.6), while the manufacturing sector also moderated (51.5 vs. 52.1). Rising levels of activity have now been recorded continuously for the past two years. New business volumes also increased and with capacity under some pressure firms continued to take on additional workers although growth was broadly confined to the services economy. Cost inflation was little changed meanwhile at an above average rate, but selling prices rose to the weakest degree in a year amid discounting in the manufacturing economy. “Spain’s economy remains robust, and GDP is likely to grow strongly in the fourth quarter, as suggested by the HCOB PMI data for October and November", Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said.