Spain Composite PMI Rises in March

The S&P Global Spain Composite PMI rose to 52.4 in March 2026 from 51.5 in February, signaling continued expansion in private sector activity. Growth was driven mainly by the services sector, as manufacturing output declined for a second consecutive month. Similar patterns were observed in new orders and employment, with services offsetting weakness in industry. Meanwhile, input cost inflation accelerated sharply, largely due to higher energy and fuel prices linked to the Middle East conflict. As a result, business confidence weakened significantly, falling to its lowest level since late 2022.

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.