FX.co ★ Spain Factory Activity Expands More than Expected

The HCOB Spain Manufacturing PMI increased to 52.1 in October 2025, up from 51.5 in the previous month, surpassing market expectations of 51.7. This indicates the sixth consecutive month of growth. The uptick in output and new orders was primarily driven by stronger domestic demand, whereas export orders fell for the second consecutive month, largely due to weak demand from France. Companies accelerated their purchasing activities at the fastest rate since December 2024; however, inventories of inputs experienced a slight decline because of extended delivery times and limited supplier availability. Employment decreased for the second month, as firms were reluctant to replace departing employees, despite growing optimism concerning future demand. Notably, input costs registered their first decline in four months, attributed to lower prices for materials such as steel and paper, prompting some companies to reduce selling prices in an effort to boost sales. Overall, manufacturers exhibited increased confidence, anticipating higher demand and investment prospects in the coming year.