FX.co ★ Spain Private Sector Growth Eases to 18-Month Low

In May 2025, the HCOB Spain Composite PMI registered a decline to 51.4 from April's 52.5, representing the slowest expansion since the growth phase started in December 2023. A notable deceleration in the services sector was observed, with its activity dipping to 51.3 from 53.4, marking the lowest point since November 2023. The downturn in the services sector was largely due to increased uncertainty, especially from international clients, which affected demand. On the other hand, manufacturing demonstrated modest gains with an index of 50.5, improving from April’s contraction at 48.1. Business decisions and market operations remained constrained due to ongoing tariff-related uncertainties, resulting in only marginal growth for new orders—the weakest since December 2023. Despite these challenges, companies continued hiring and made slight reductions in their backlog. Regarding pricing, the rate of increase in input costs and output charges decreased in May, although inflation levels still exceeded historical norms.