Spain Factory Activity Rises Less than Expected

The S&P Global Spain Manufacturing PMI eased to 51.2 in May 2026 from 51.7 in April, below forecasts of 52, signaling a modest but slowing expansion. The ongoing Middle East conflict intensified supply chain disruptions, driving shortages and higher input costs, while uncertainty weighed on activity. New orders fell for the fifth time in six months amid weak domestic and external demand, with exports declining for a ninth straight month. As a result, output rose only marginally for a second month, and firms reduced both employment and purchasing activity. On the price front, input costs rose at the fastest pace in four years and among the strongest in the survey’s history, with the recent acceleration seen in the past three months the most pronounced since 1998. Higher input prices fed through to output charges as firms sought to protect margins. Lastly, confidence in the outlook remained historically subdued despite improving further from March’s recent low.

The S&P Global Spain Manufacturing PMI rose to 51.7 in April 2026 from 48.7 in March, surpassing market forecasts of 49.5. The latest data signals a return to growth in manufacturing activity for the first time since last November, driven by a solid rise in production, which increased at its fastest pace in five months. This was supported by a slight rebound in new orders following March’s sharp contraction, partly reflecting inventory accumulation as clients sought to secure goods amid product shortages and supply disruptions linked to the Middle East war. Export orders continued to decline for the eighth consecutive month, though at a slower pace, highlighting underlying demand fragility. Purchasing activity and employment decreased again. Price pressures intensified, with input costs rising at the fastest rate since June 2022 and selling prices increasing at their steepest since November 2022. Sentiment remained historically weak, with firms highly uncertain about the outlook.

The S&P Global Spain Manufacturing PMI fell to 48.7 in March 2026 from 50 in February, marking the weakest reading since April 2025 and missing market expectations of 50.4. The Middle East conflict intensified, driving geopolitical uncertainty, supply chain disruption and sharply higher energy and input costs. Output and new orders declined at a faster pace, with international demand posting its steepest drop since last April, while employment fell notably as firms adjusted to weaker conditions. Business confidence deteriorated sharply, hitting its lowest level since October 2023, as firms cited concerns over prolonged economic slowdown and rising inflation. Input prices surged to their highest since late 2022, supplier delays worsened to the greatest extent in over three years, and companies increasingly relied on existing inventories while cutting purchases and raising selling prices where possible.