Spain Manufacturing Sector Growth Highest in Over a Year

The S&P Spain Global Manufacturing PMI rose to 52.2 in October 2026 from 51 in September, above market expectations of 50.8 and marking its highest reading since August 2025. Production and new orders increased simultaneously for the first time in six months, supported by stronger domestic and foreign demand. The improvement in orders, combined with production delays and slightly lower employment, pushed backlogs of work to their fastest increase since August 2025. Supply-chain disruptions persisted, with delivery times lengthening sharply amid vendor stock shortages and delays on key maritime routes. Manufacturers responded by increasing purchasing activity for the first time since November 2025. However, higher costs for energy, fuel and transportation, alongside more expensive metals, drove the fastest input price inflation since May. Firms raised selling prices accordingly. Looking ahead, business confidence weakened amid cost pressures and geopolitical uncertainty.

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.

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.