Spanish HCOB Manufacturing PMI (Feb) 50.0 vs. Exp. 50.1 (Prev. 49.2)

• "Production is softening, orders are declining, and foreign markets have not provided any stimulus for several months. Companies attribute the latter largely to the effects of the U.S. trade shock and the strong euro."
• “In terms of price dynamics, the Spanish manufacturing sector shows signs of normalisation. Input prices have risen amid higher costs for various raw materials. Firms appear to have passed these cost increases on to customers through their output prices."

The Spanish HCOB Manufacturing PMI for February came in slightly below expectations, suggesting that while the sector has stabilized relative to the previous month, underlying challenges persist. Notably, declining orders and weaknesses in foreign markets, exacerbated by the U.S. trade shock and strong euro, could signal ongoing headwinds for growth, putting pressure on policy considerations as inflationary pressures from rising input costs may lead to tighter monetary conditions.