FX.co ★ Spain Factory Activity Unexpectedly Shrinks Again

In March 2025, the HCOB Spain Manufacturing PMI decreased to 49.5, down from 49.7 in February, and below the anticipated level of 50. This indicates a second consecutive decline in manufacturing activity, marking the most significant drop since early 2024. The volume of new orders continued to decline at an accelerated rate, primarily due to ongoing geopolitical uncertainties impacting product markets. As a result, manufacturers reduced their inventories for the second consecutive month, anticipating lower sales in the future. Despite these challenges, production continued to expand for the seventh consecutive month, and employment saw a modest increase. In terms of pricing, input price inflation eased again in March, reaching its lowest level since the previous November, as it fell for the second month in a row. Looking ahead, business confidence notably decreased, reaching its weakest point since last August.