Spanish manufacturing inches back to growth in July, PMI shows

August 3, 2026 3:53 AM EDT

FILE PHOTO: Ebro Automotive's staff work in a car assembly line at their factory in Zona Franca in Barcelona, Spain November 14, 2024. REUTERS/ Albert Gea/File Photo

Aug 3 (Reuters) - Spain's ‌manufacturing sector returned ​to ​marginal growth in July, even as output and new orders fell again amid market ‌uncertainty and Middle East-related supply disruption, a business ⁠survey showed on Monday.

• The S&P Spain Manufacturing Purchasing Managers' Index (PMI) ‌rose to 50.2 from ‌49.7 in June, a survey by S&P Global showed. A Reuters survey of nine analysts had pointed ​to a reading of 50.0.

• "The uneven performance of Spain's manufacturing sector seen in 2026 continued in ⁠July. Output and new orders both fell, linked to the underlying uncertainty presently ​dominating product markets," said Paul Smith, Economics Director at S&P Global Market Intelligence.

• Production fell ​for a second straight month, ‌while new orders declined for a third month running, though only marginally and at ⁠a much slower pace than in June.

• New export sales fell again and by more than total new business.

• ⁠Supplier delivery times lengthened noticeably again in July as shipping disruption ​linked to the Middle East conflict persisted.

• Employment fell for an 11th consecutive month, although only marginally, as firms often chose ‌not to replace leavers and some held back from hiring because of weak sales.

• ‌Price pressures eased further. Input cost inflation slowed for ⁠a second month to ‌its weakest since ​February, while output price inflation softened to a five-month low.

(Reporting by Reuters; Editing by Toby ‌Chopra)



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