Spain Manufacturing Sector Rises More than Expected

2026-10-01 07:28 By Luisa Carvalho 1 min. read

The S&P Spain Global Manufacturing PMI rose to 51 in September 2026 from 49.5 in the prior month and above market forecastst of 50.1.

The reading marked a return to growth, albeit modest, driven partly by a rebound in production after three months of contraction.

External demand provided the main support, with firms reporting new projects and a rise in orders from international clients.

New exports increased for the first time since August 2025, although overall new orders fell for a fifth consecutive month.

Meanwhile, employment stabilized after 12 months of decline.

Firms again stressed, however, that supply-side challenges remained acute, pushing up prices and causing input delivery delays.

Input and output prices rose at an accelerated pace and at above-trend rates, on higher energy, fuel and oil-related costs.

Looking forward, business confidence improved in September to its highest level since February, despite Middle East uncertainty and concerns over higher energy prices.



News Stream
Spain Manufacturing Sector Rises More than Expected
The S&P Spain Global Manufacturing PMI rose to 51 in September 2026 from 49.5 in the prior month and above market forecastst of 50.1. The reading marked a return to growth, albeit modest, driven partly by a rebound in production after three months of contraction. External demand provided the main support, with firms reporting new projects and a rise in orders from international clients. New exports increased for the first time since August 2025, although overall new orders fell for a fifth consecutive month. Meanwhile, employment stabilized after 12 months of decline. Firms again stressed, however, that supply-side challenges remained acute, pushing up prices and causing input delivery delays. Input and output prices rose at an accelerated pace and at above-trend rates, on higher energy, fuel and oil-related costs. Looking forward, business confidence improved in September to its highest level since February, despite Middle East uncertainty and concerns over higher energy prices.
2026-10-01
Spain Manufacturing Sector Contracts in August
The S&P Global Manufacturing PMI fell to 49.5 in August 2026 from 50.2 in July, the lowest since March and missing expectations of 50.1. Both production and new orders declined, reflecting subdued domestic demand and weaker international sales, with tariffs also weighing on exports. Firms responded by drawing down finished-goods and input inventories, while purchasing activity contracted for a ninth month. Employment also fell for the twelfth month in a row, although the decline in outstanding work was partly supported by lower capacity utilisation. Supply conditions remained challenging, as disruptions linked to the Middle East conflict affected shipping routes and the availability of materials. Higher energy and transportation costs pushed input-price inflation significantly higher, prompting firms to raise selling prices as well. Looking ahead, business confidence weakened further, with concerns over elevated energy costs and fragile demand clouding the outlook for production.
2026-09-01
Spain Manufacturing Activity Remains Subdued
The S&P Spain Manufacturing PMI rose to 50.2 in July 2026 from 49.7 in June, hovering just above the expansion threshold. Despite the slight uptick, underlying performance remained weak, as both output and new orders continued to decline. Ongoing Middle East conflict disruptions caused persistent shipping delays, supply chain bottlenecks, and elevated energy and transport costs. However, overall input and output price inflation cooled to a five-month low. In response to sluggish market demand, manufacturers aggressively drew down existing input and finished goods inventories while cutting purchasing activity at the sharpest rate in over a year. Employment contracted marginally for the eleventh consecutive month due to unreplaced staff departures and hiring hesitations. Nevertheless, broader business sentiment rebounded to its highest level since February, driven by long-term growth plans and expectations of an eventual market recovery.
2026-08-03