A stuttering begin to the brand new yr for Spain’s manufacturing sector. Each output and new orders noticed softer features whereas employment situations additionally slumped decrease in January. HCOB notes that:
âThe brand new yr is off to a weak begin. The momentum in Spain’s manufacturing sector has considerably slowed on the
starting of 2025. This is because of manufacturing heading towards stagnation, and order ranges rising at a a lot slower fee,
following strong progress in each areas in earlier months. Overseas orders additionally broadly stagnated in January. The surveyed
firms partly attribute this to the weak point in main Eurozone nations like Germany and France. Nonetheless, this has
not dampened enterprise expectations for the approaching yr. Corporations stay hopeful as new tasks have been initiated on the
begin of the brand new yr, aiming to enhance commerce and output.
âDevelopments on the worth entrance are inflicting concern. Enter worth inflation has accelerated for a number of consecutive months,
as indicated by the HCOB PMI. Nonetheless, we’re nonetheless removed from the excessive ranges of enter inflation noticed following the
provide bottlenecks after the pandemic and the Russian invasion of Ukraine. Enter worth inflation is now near its long-term
common. For the primary time in a number of months, output costs have additionally risen. The upper costs can certainly be interpreted as
passing on the elevated enter prices to customers.
âRegarding shopper items, the HCOB PMI signalled a slight weakening in comparison with the earlier month, but progress
stays strong total, in keeping with current tendencies. In distinction, the intermediate and funding good sectors are each
stagnating at first of the yr. The final weaknesses in Europe’s key industries, such because the automotive and
equipment sectors, might now even be affecting Spain’s manufacturing business, resulting in weaker efficiency, notably in
these sectors.
âAfter a number of months of considerable progress, manufacturing employment was little modified in January. The place extra workers
have been wanted, firms didn’t refuse to rent however price pressures and restructuring efforts strained employment progress.
Nonetheless, backlogs of labor have been rising for a yr now. Mixed with constructive enterprise sentiment, this creates a
secure setting for Spanish manufacturing staff.â
