Spanish manufacturing returns to growth in September, PMI shows

Spain's Manufacturing Sector Returns to Growth as September PMI Hits 51.0

Spain's Manufacturing PMI and Sector Performance in September

Growth Resumes Amid Challenging Conditions

Oct 1 (Reuters) - Spain's manufacturing sector resumed growth in September as output rose for the first time in four months despite sluggish demand and higher prices, while business confidence improved on expectations of stronger demand, a business survey showed on Thursday.

PMI Rises Above Growth Threshold

The S&P Spain Manufacturing Purchasing Managers' Index (PMI) rose to 51.0 last month from 49.5 in August, according to the survey by S&P Global. The 50-mark separates growth from contraction.

Expert Commentary on Sector Resilience

"The performance of Spain's manufacturing sector improved in September, with the sector displaying resilience in the face of intensifying price pressures," said Paul Smith, Economics Director at S&P Global Market Intelligence, pointing also to stronger confidence in the outlook.

Business Confidence and Demand Outlook

Business confidence rose to its highest since February as companies expected demand to strengthen over the coming year.

Production and Export Orders

Production increased after three straight monthly declines, with new export orders rising for the first time since August 2025, S&P Global said.

Challenges: New Orders and Price Pressures

Still, overall new orders fell for a fifth successive month. Firms linked the marginal decline to uncertainty and the impact of rising prices, mainly for energy amid the U.S.-Iran war, on demand.

Input cost inflation accelerated to its strongest in four months, while output price inflation picked up to a three-month high as manufacturers passed on part of those higher costs. 

Employment Trends

Employment was unchanged, ending a 12-month run of net job losses as some firms recruited in response to firmer workloads.

(Reporting by Andrei Khalip; Editing by Toby Chopra)