Spain Private Sector Growth at 22-Month High

The S&P Global Spain Composite PMI eased to 56.2 in October 2026 from 56.8 in September, but marked a sixth consecutive month of strong private sector activity growth. Services remained the main driver of expansion, although the services business activity index fell to 57.6 from 58.3. Meanwhile, manufacturing activity gained momentum, with its PMI rising to 52.2 from 51.0, marking its highest level since August 2025. Both sectors recorded increases in new orders, while employment continued to rise in services. However, services new business growth slowed to a five-month low, partly reflecting weaker export demand. Meanwhile, input cost inflation accelerated amid higher energy, fuel and transportation costs, with manufacturers reporting their fastest cost increases since May. Business confidence weakened in manufacturing, while service providers remained more optimistic.

The S&P Global Spain Composite PMI rose to 56.8 in September 2026 from 55.8 in August, marking the fifth consecutive month that the index is above the 50-point threshold and its highest level since December 2024. Services remained the main driver of expansion, while manufacturing returned to marginal growth after contracting in August. Employment in the private sector rose again, and business confidence improved further, pointing to a firmer outlook for output in the year ahead. However, rising cost pressures remained a concern, with input price inflation accelerating and output charges rising at their fastest pace since April.

The S&P Global Spain Composite PMI fell to 55.8 in August 2026, from 56.5 in July, when it reached its highest level since December 2024. Despite the slowdown, the reading continued to signal robust growth in private-sector activity. However, growth was entirely driven by the services sector, where the PMI eased only slightly to 57.8 from 58.3. By contrast, manufacturing slipped into contraction, with the PMI falling to 49.5 from 50.2 and output declining at its fastest pace since December 2023. Similar divergences in sector performance were seen for new orders and employment. Meanwhile, rates of both input and output price inflation accelerated since July. Confidence in the outlook softened to its lowest in three months.