Spanish manufacturing stabilises in February but demand stays weak, PMI shows

MADRID, Mar 2 (Reuters) - Spain's ‌manufacturing sector ​showed ​signs of stabilisation in February after two months of contraction, though demand remained subdued, a survey ‌by S&P Global showed on Monday.

The HCOB Spain Manufacturing ⁠Purchasing Managers' Index (PMI) edged up to 50.0 in February, marking a ‌neutral stance after January's nine-month ‌low of 49.2. A PMI above 50 indicates growth, and signals contraction if below 50.

Despite the stabilisation, new ​orders continued to fall for the third consecutive month, though the decline slowed compared to January. Export demand ⁠remained a challenge, with firms citing the impact of U.S. tariffs and unfavourable exchange ​rates.

"Spain's manufacturing sector continues to struggle to gain traction," said Jonas Feldhusen, Junior Economist at Hamburg ​Commercial Bank. "The current headline PMI reading ‌of 50 signals stagnation, suggesting that the manufacturing sector entered this winter with less momentum."

The ⁠survey also highlighted sustained cost pressures, with input prices rising to a 13-month high, driven by increased costs for raw materials ⁠such as aluminium and steel. This led to the first increase in ​factory gate prices since August 2025, although the rise was marginal.

Employment in the sector saw a slight decline, extending the trend of job ‌shedding that began in September 2025. However, the pace of job losses was the slowest ‌in three months.

Despite the challenges, business expectations remained optimistic, with ⁠hopes for improved demand ‌conditions and successful ​investments. Some firms also planned to expand into new export markets.

(Reporting by David Latona; Editing by Toby ‌Chopra)

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