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Spanish HCOB Manufacturing PMI (Jan) 49.2 vs. Exp. 49.9 (Prev. 49.6)

The Spanish HCOB Manufacturing PMI for January came in at 49.2, missing expectations of 49.9 and down from the previous month's 49.6.

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Spanish HCOB Manufacturing PMI (Jan) 49.2 vs. Exp. 49.9 (Prev. 49.6)

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  • "Although production has stabilised, the deterioration in demand conditions is becoming increasingly concerning. Both domestic and foreign new orders declined further, despite already subdued levels."
  • "As order books weaken, firms are running down their backlogs at an accelerated pace. At the same time, cost pressures have intensified as this month’s prices for key inputs, such as aluminium and copper, rose again."
  • “Despite the loss of momentum, Spanish manufacturers retain a notably upbeat view of the year ahead. Many manufacturers continue to anticipate stable demand throughout 2026 and are confident that ongoing investments and newly launched projects will pay off."
Context

This signals a continued contraction in the manufacturing sector, driven by declining domestic and foreign orders, though firms remain optimistic about future demand, suggesting a divergence between current conditions and forward-looking sentiment.

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