FX.co ★ Spain Manufacturing Activity Loses Steam

The HCOB Spain Manufacturing PMI declined to 51.5 in September 2025, down from 54.3 in August, falling short of the market prediction of 53.9. Despite the figure still representing expansion, it indicated the slowest growth in three months. This deceleration was attributed to weaker increases in both production and new orders, while export sales experienced a downturn for the first time in three months due to tariffs, trade interruptions, and political instability. Purchasing activity remained largely stable; however, some companies turned to existing inventories, resulting in the first inventory build-up in four months. Employment figures decreased for the first time since February, as businesses took a cautious approach, opting to pause on contract renewals. Supplier lead times extended further because of shortages and transport delays. Regarding pricing, input costs saw a modest increase, driven primarily by metals and food, while output prices dipped slightly as customers demanded discounts. Business confidence fell from its peak in August—a six-month high—but remained robust, with enterprises still projecting growth in the future.