Spain’s Private Sector Growth Slows to Nine-Month Low

The HCOB Spain Composite PMI fell to 51.5 in February 2026 from 52.9 in January, signaling the slowest expansion in Spain’s private sector since May 2025. The slowdown was driven by weaker momentum in the services sector and a renewed contraction in manufacturing output. Similar patterns emerged in both new orders and employment, with growth moderating across services and declining in manufacturing. Meanwhile, inflationary pressures intensified. Firms reported faster increases in both input costs and output prices, pointing to a pickup in private sector inflation. Business confidence also weakened, with expectations for future activity slipping to a six-month low.

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.