Spain: Decline in demand causes contraction in Spain’s manufacturing industry this January
Spain’s Manufacturing Sector Faces a Challenging Start to 2026
The beginning of 2026 proved difficult for Spain’s manufacturing industry. While production levels steadied after a decline in December, the volume of new orders dropped even more sharply, largely due to a faster decrease in export demand. Amid growing cost pressures and heightened competition, manufacturers responded by streamlining their operations—reducing purchases, trimming inventories, and cutting jobs.
The seasonally adjusted HCOB Spain Manufacturing Purchasing Managers’ Index™ (PMI®), which offers an overview of the sector’s health, reflected these ongoing challenges.
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