Spain’s manufacturing sector showed a rebound in September, with the S&P Spain Manufacturing Purchasing Managers’ Index (PMI) climbing to 51.0 from 49.5 in August, according to a survey by S&P Global. A reading above the 50‑point threshold signals expansion, marking the first month of growth in four months.
Improved confidence and output
Paul Smith, Economics Director at S&P Global Market Intelligence, said the sector displayed resilience despite rising price pressures. Business confidence also improved, reaching its highest level since February as firms expect demand to strengthen over the next year.
Production rose after three consecutive months of decline, and new export orders increased for the first time since August 2025. However, overall new orders continued to fall for a fifth straight month, a trend firms attribute to uncertainty and higher energy costs linked to the ongoing U.S.–Iran conflict.
Cost pressures and employment
Input‑cost inflation accelerated to its strongest level in four months, while output‑price inflation rose to a three‑month high as manufacturers passed some of the higher costs onto customers. Employment remained flat, ending a 12‑month period of net job losses, as some companies hired to meet firmer workloads.
The survey underscores a mixed picture: while growth and confidence are returning, firms remain wary of price volatility and lingering demand uncertainty.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
