Spain’s Manufacturing PMI Returns to Growth at 51.0 in September
Key Facts
Spain’s S&P Global Manufacturing Purchasing Managers’ Index returned to growth territory in September, rising to 51.0 points from 49.5 in August, according to data reported by Reuters. The 50-point threshold separates growth from contraction, meaning September’s reading indicated improved activity after a contraction in the previous month. The shift came as output increased for the first time after three consecutive months of decline. But the picture was mixed, as total new orders fell for a fifth consecutive month. The index therefore reflected a return to growth in activity, alongside continued weakness in the flow of orders to the sector.
Higher output was the main driver of improvement in September’s reading, ending a run of monthly declines that had lasted three months. By contrast, total new orders continued to fall, signaling persistent weakness in demand facing factories. Reuters said total orders fell for a fifth consecutive month, despite improvement in other survey components. The divergence highlights the gap between what factories produced during the month and the volume of new business they received. Accordingly, a return to a reading above 50 did not mean that all indicators of manufacturing activity improved at the same time.
New export orders were a bright spot in the details on demand, rising in September for the first time since August 2025. That improvement, however, was not enough to halt the decline in total new orders, which fell for a fifth consecutive month. The divergence suggests that stronger overseas sales did not dispel weakness in the overall volume of orders received by companies. Reuters reported that the increase in export orders coincided with a continued fall in total orders. Exports thus provided support for activity, while the overall demand picture remained more cautious.
Companies reported mounting cost and pricing pressures in September. Input cost inflation accelerated to its strongest pace in four months, while output price inflation rose to its highest level in three months, Reuters reported. The two readings mean that rising costs and faster increases in product prices coincided with the index’s return to growth. These developments add another dimension to the sector’s performance, alongside improved output and export orders and continued declines in total orders. Cost and output price trends are also among the factors companies monitor when assessing industry conditions during the month.
Employment in the sector was stable in September, ending a 12-month run of net job losses, according to Reuters. The stability means net losses recorded in previous months came to a halt, without in itself indicating an increase in the number of workers. At the same time, business confidence rose to its highest level since February. Reuters said companies expected demand to improve over the following year. The survey thus combined the end of job losses and increased optimism about future demand with the reality of falling total orders in September.
September’s reading puts the sector on a recovery path from August’s contraction, after the index rose from 49.5 to 51.0 points and crossed the 50 threshold separating growth from contraction. In August, Spain saw divergent performance across industrial sectors: energy output recorded the highest annual rate among the sectors cited, at 4.7%, while durable consumer goods output fell 6.9% year on year, according to Spain’s National Statistics Institute. August data show differing performance across components of industry, while the PMI reading measures a different month-to-month movement. EL7 had also reported previously that manufacturing returned to growth in September.