Spain Manufacturing Growth Slows to Three-Month Low in September

Spain’s manufacturing sector expanded at a softer pace in September, with growth easing to its weakest level in three months, the latest HCOB Spain Manufacturing PMI survey showed.

The seasonally adjusted PMI slipped to 51.5 in September from 54.3 in August, marking the slowest growth since June. Still, the index remained above the 50.0 threshold for the fifth straight month, signaling continued, albeit weaker, expansion.

Output and new orders rose again but at a reduced pace, with production growth hitting a four-month low. New export orders fell for the first time since June, with manufacturers citing tariffs and political uncertainty in key overseas markets.

Employment declined for the first time since February, as firms opted not to renew contracts or replace departing staff amid softer demand. Business confidence also weakened from August’s six-month high.

Purchasing activity stagnated, with some manufacturers choosing to draw on existing inventories. Despite this, input stocks rose for the first time in four months, suggesting production and sales underperformed expectations. Supplier delivery times lengthened further due to resource shortages and transport bottlenecks.

On the price front, input costs increased for the third consecutive month, driven by higher steel and foodstuff prices, though overall inflationary pressures were moderate. Output charges, meanwhile, fell slightly for the first time in three months as competitive pressures limited firms’ ability to pass on costs.