FX.co ★ Spain Manufacturing Activity Gains Momentum

In July 2025, the HCOB Spain Manufacturing PMI increased to 51.9 from June's 51.4, surpassing the anticipated 51.5. This indicates the most significant improvement in operating conditions observed this year, underpinned by robust output growth fueled by new projects and stronger demand. New orders experienced the swiftest growth since late 2024, despite export sales remaining lackluster. Employment growth reached its highest point since December 2024. On the pricing front, input price inflation re-emerged for the first time in three months, attributed to supplier markups associated with tariffs and stock shortages. Firms slightly raised output charges to compensate for increased costs. For the sixth consecutive month, purchasing activity declined, with input inventories and vendor performance further deteriorating due to reliance on existing stock and prolonged delivery times. Nevertheless, business confidence declined to a three-month low amid ongoing global trade uncertainties and geopolitical tensions, casting a shadow on future prospects.