FX.co ★ Spain's Manufacturing Returns to Growth in May

The HCOB Spain Manufacturing PMI rose to 50.5 in May 2025, up from 48.1 in April, exceeding the anticipated market projection of 48.4. This increase signifies the first growth in the manufacturing sector following three consecutive months of decline and represents the highest index level since January. According to some participants, the rise in production can be attributed to a moderate improvement in fundamental demand and a partial alleviation of global tariff uncertainties, which had notably hindered market activity in April. Although there was a decrease in sales volumes, it was slight and represented the smallest reduction in four months. Companies continued augmenting their workforce for the third consecutive month. Additionally, the subdued trend in purchasing activities led to a reduction in input costs, marking the first decrease since the beginning of 2024. Companies also reduced their output prices at the swiftest rate since last September, driven by reports of intense market competition. Finally, the outlook for production over the next 12 months reached its most optimistic level in three months.