FX.co ★ Spain Manufacturing Expands for Second Month

In June 2025, the HCOB Spain Manufacturing PMI increased to 51.4, surpassing market predictions and the previous month's figure of 50.5. This represents the year's highest reading and marks the second consecutive month of moderate growth. The uptick was primarily driven by a robust increase in production—the strongest since December of the previous year—and a resumption in new order growth following a four-month decline. However, foreign demand continued to struggle, with new export orders diminishing amidst uncertainties related to tariffs. Employment levels rose, albeit with modest job creation. Companies remained cautious regarding purchases, frequently relying on existing inventories due to delivery delays and global trade uncertainties. Input prices decreased for the second consecutive month, facilitated by subdued demand and a stronger euro. In response to competitive pressures, output prices also fell as companies reduced charges. Despite prevailing global risks, business sentiment improved, reaching a four-month high, thanks to anticipated new product launches and capacity investments.