Finance
Spanish manufacturing stabilises in February but demand stays weak, PMI shows
Published by Global Banking & Finance Review®
Posted on March 2, 2026
2 min readLast updated: March 2, 2026
Quick Summary
Spain’s manufacturing PMI rose to a neutral 50.0 in February from January’s 49.2, halting contraction. Yet, new orders continued to decline amid weak domestic and export demand, while input cost pressures led to a modest rise in factory gate prices.
Spain’s Manufacturing Sector Stabilises in February but Demand Remains Weak
Overview of Spain's Manufacturing Performance in February
Stabilisation After Contraction
MADRID, Mar 2 (Reuters) - Spain's manufacturing sector showed signs of stabilisation in February after two months of contraction, though demand remained subdued, a survey by S&P Global showed on Monday.
PMI Data and Interpretation
The HCOB Spain Manufacturing Purchasing Managers' Index (PMI) edged up to 50.0 in February, marking a neutral stance after January's nine-month low of 49.2. A PMI above 50 indicates growth, and signals contraction if below 50.
Demand and Export Challenges
New Orders and Export Demand
Despite the stabilisation, new orders continued to fall for the third consecutive month, though the decline slowed compared to January. Export demand remained a challenge, with firms citing the impact of U.S. tariffs and unfavourable exchange rates.
Expert Commentary
"Spain's manufacturing sector continues to struggle to gain traction," said Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank. "The current headline PMI reading of 50 signals stagnation, suggesting that the manufacturing sector entered this winter with less momentum."
Cost Pressures and Employment Trends
Rising Input Prices
The survey also highlighted sustained cost pressures, with input prices rising to a 13-month high, driven by increased costs for raw materials such as aluminium and steel. This led to the first increase in factory gate prices since August 2025, although the rise was marginal.
Employment Situation
Employment in the sector saw a slight decline, extending the trend of job shedding that began in September 2025. However, the pace of job losses was the slowest in three months.
Business Outlook
Despite the challenges, business expectations remained optimistic, with hopes for improved demand conditions and successful investments. Some firms also planned to expand into new export markets.
(Reporting by David Latona; Editing by Toby Chopra)
Key Takeaways
- •PMI at 50.0 signals neutral manufacturing activity after two new months of contraction, highlighting stabilisation but no growth
- •New orders fell for the third month running, with export demand dampened by U.S. tariffs and a strong euro
- •Input prices surged to a 13‑month high, prompting the first rise in output prices since August 2025, and employment continued to decline, though job losses slowed
Frequently Asked Questions about Spanish manufacturing stabilises in February but demand stays weak, PMI shows
1What did the Spanish manufacturing PMI indicate in February?
The PMI was 50.0 in February, signaling stabilisation after two months of contraction.
2Did demand in Spain's manufacturing sector improve in February?
No, demand stayed weak with new orders falling for a third consecutive month, but the decline slowed.
3What external factors affected Spanish manufacturing exports?
Impact of U.S. tariffs and unfavorable exchange rates posed challenges to export demand.
4How did factory input prices change in February?
Input prices rose to a 13-month high, mainly due to higher raw material costs.
5What is the employment trend in Spain’s manufacturing sector?
Employment declined slightly but job losses were the slowest in three months.
