FX.co ★ Spain Factory Activity Rises Less than Expected

The S&P Global Spain Manufacturing PMI edged down to 51.2 in May 2026 from 51.7 in April, falling short of market expectations of 52 and indicating a modest yet decelerating expansion. The ongoing conflict in the Middle East continued to disrupt supply chains, leading to material shortages and higher input costs, while heightened uncertainty weighed on overall activity. New orders declined for the fifth time in six months amid subdued domestic and external demand, with export orders falling for a ninth consecutive month. Consequently, production increased only marginally for a second straight month, and manufacturers scaled back both employment and purchasing activity. On the price front, input costs rose at the fastest rate in four years and at one of the steepest paces in the survey’s history, with the acceleration seen over the past three months the sharpest since 1998. These higher input prices were passed on to customers through increased output charges as firms sought to safeguard profit margins. Finally, business confidence in the outlook, while improving from March’s recent low, remained historically subdued.