Spain Factory Activity Expands More than Expected

The HCOB Spain Manufacturing PMI rose to 52.1 in October 2025 from 51.5 in September, above market expectations of 51.7 and marking the sixth consecutive month of expansion. Growth in both output and new orders strengthened, driven mainly by firmer domestic demand, while export orders declined for a second month, with weak demand from France noted. Firms increased purchasing activity at the fastest pace since December 2024, though inventories of inputs fell slightly amid longer delivery times and limited supplier stock. Employment declined for a second month as companies hesitated to replace departing staff, despite rising optimism about future demand. Meanwhile, input costs recorded their first fall in four months, with lower prices for materials like steel and paper, prompting some firms to cut selling prices to boost sales. Overall, manufacturers expressed improved confidence, expecting higher demand and investment in the year ahead.