The HCOB Spain Manufacturing PMI fell to 49.7 in February 2025, indicating the first contraction in over a year, down from 50.9 in January and below market expectations of 51.4.
Despite slight output growth, new orders fell for the first time since July, driven by weaker demand from key European and US markets and ongoing geopolitical uncertainties.
Employment also declined as firms refrained from replacing departing workers.
Input costs rose due to supplier price increases, prompting firms to raise their own prices.
Companies reduced purchasing and inventories to avoid overstocking amid softening demand.
However, business confidence improved to its highest level since May 2024, supported by hopes for better economic conditions and stronger commercial strategies.