Spain's manufacturing sector enters contraction territory

[The national flag of the country of Spain]
CGinspiration/E+ via Getty Images

The seasonally adjusted HCOB Spain PMI – a composite index designed to provide a summary of operating conditions in the manufacturing economy – registered 49.6 in December. That compared to 51.5 in November and marked the first deterioration in manufacturing operating conditions for eight months.

Key findings include: concurrent falls in both output and new orders; fastest reduction in employment for two years; confidence in outlook highest since May 2024.

“Spain’s manufacturing sector saw an unexpected setback in December. Both output and new orders slipped below the growth threshold for the first time since spring. This signifies a shift after a period of steady resilience, suggesting that underlying downward pressures may finally be catching up. Despite this pullback, the industry remains more resilient than its German or French counterparts, though the latest trend raises some concerns." said [https://www.pmi.spglobal.com/Public/Home/PressRelease/66a3f63df4ce4e2e96d0427861052c0e] Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank.

MORE ON SPAIN

* EWP: Spanish Stocks To Benefit From Solid GDP Growth In 2026 [https://seekingalpha.com/article/4855596-ewp-spanish-stocks-to-benefit-from-solid-gdp-growth-in-2026]
* EUFN: Offering Pure-Play Coverage To European Financials [https://seekingalpha.com/article/4853038-eufn-offering-pure-play-coverage-to-european-financials]
* EUFN: 2025 Outperformance Persists, But European Bank Tailwinds Are Lighter [https://seekingalpha.com/article/4846217-eufn-2025-outperformance-persists-but-european-bank-tailwinds-are-lighter]
* Spain inflation eases in December, retail sales up 6% Y/Y [https://seekingalpha.com/news/4535775-spain-inflation-eases-in-december-retail-sales-up-6-yy]
* Spain's service PMI drops in November [https://seekingalpha.com/news/4527930-spains-service-pmi-drops-in-november]