Spain Private Sector Growth Hits Over 1-1/2-Year High

The HCOB Spain Composite PMI picked up to 56.5 in July 2026 from 53.3 in June, indicating a third consecutive month of expansion, with growth accelerating to its fastest pace since December 2024. Services continued to outperform manufacturing, with the latter recording a slight decline in output. New work increased at the sharpest pace since the start of 2025, pointing to improving demand conditions. Firms continued to add staff, with job creation once again driven entirely by service providers. Moreover, cost pressures moderated further, with input price inflation easing to a five-month low.

The HCOB Spain Composite PMI rose to 53.3 in June 2026 from 50.2 in May, signaling a second straight month of expansion and the strongest growth since December 2025. The services sector carried overall growth, as manufacturing output returned to contraction for the first time in three years. New orders increased overall, as a marked rise in demand for services more than offset a sharp decline in new business received by manufacturers. Meanwhile, inflationary pressures eased during the month, as rates of inflation softened. Looking forward, business confidence improved to its highest level since February.

The HCOB Spain Composite PMI rose to 50.2 in May 2026 from 48.7 in April, pointing to a broad stabilisation in business conditions after a steep downturn in the prior month. Services activity leveled off after contracting in the month before, while output continued to rise, albeit more modestly. New orders were broadly unchanged, while employment continued to grow at a solid pace. Business confidence improved to a three-month high but remained below its long-term average. Input cost inflation accelerated to its strongest level since November 2022, whereas output price inflation eased to a three-month low, although it remained above historical levels.