The HCOB Spain Manufacturing PMI rose to 51.4 in June 2025, compared to market expectations and May’s 50.5 in May. This marked the highest reading so far this year, and the second consecutive month of modest expansion.
The improvement was driven by a solid rise in production, the strongest since last December, and a return to growth in new orders after four months of contraction. However, foreign demand remained weak, with new export orders falling again amid tariff-related uncertainty. Employment continued to rise, though job creation stayed modest. Firms were cautious with purchases, often using existing inventories due to delivery delays and global trade uncertainty. Input prices fell for the second month, helped by soft demand and a stronger euro. Output prices also declined as firms cut charges to stay competitive. Despite global risks, sentiment improved, with optimism at a four-month high on expectations of new product launches and capacity investments.
