Spain Feb. composite PMI falls to 51.5; forecast 52.9
TL;DR
Spain's composite PMI fell to 51.5 in February 2026, below the 52.9 forecast, indicating modest but weaker expansion. Manufacturing stabilized at 50.0 after contraction, but faced headwinds like declining orders and rising costs, while services offset some weakness.
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Spain Feb. composite PMI falls to 51.5; forecast 52.9
Spain’s Composite PMI Falls to 51.5 in February, Below Forecast
Spain’s composite Purchasing Managers’ Index (PMI), which tracks both manufacturing and services activity, declined to 51.5 in February 2026, below the forecast of 52.9, signaling modest expansion but weaker momentum. This follows a challenging period for the manufacturing sector, which showed signs of stabilization in February after two months of contraction. The HCOB Spain Manufacturing PMI rose to 50.0 in February, a neutral reading indicating neither growth nor contraction, up from 49.2 in January.
The manufacturing sector faced persistent headwinds, including declining new orders for the third consecutive month and cost pressures from rising input prices. Raw material costs, particularly for aluminium and steel, reached a 13-month high, pushing factory gate prices upward for the first time since August 2025. Export demand remained constrained by U.S. tariffs and unfavorable exchange rates, while employment in manufacturing saw a slight decline, though the pace of job losses slowed to a three-month low.
Despite these challenges, business confidence held steady, with firms expressing cautious optimism about future demand and plans to expand into new export markets. The services sector, which contributes significantly to the composite PMI, likely offset some manufacturing weakness, though its performance was not detailed in available data.
The composite PMI’s drop to 51.5 underscores lingering economic fragility, particularly as external demand pressures and cost inflation persist. Analysts note that the manufacturing sector “entered this winter with less momentum,” highlighting the need for policy support and structural adjustments to sustain recovery. Investors will closely monitor upcoming data to gauge whether the stabilization in manufacturing translates into broader economic resilience.
