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The HCOB Spain Manufacturing Purchasing Managers' Index (PMI) dropped to 49.2 in January 2026 from 49.6 in December 2025, remaining below the growth threshold of 50. The decline in new orders was prompted by customer hesitation domestically and internationally, amid ongoing global uncertainties.

Export orders fell for the fifth consecutive month, marking the steepest contraction since April 2025, affected by tariffs and a high Euro-Dollar exchange rate. Employment also decreased for the fifth month, as companies reacted to weaker order books and rising cost pressures.

Input prices surged, reaching the highest inflation in a year due to increased costs for raw materials like aluminum and copper. However, intense competition limited manufacturers' ability to pass these costs onto customers, leading to a fifth consecutive month of reduced selling prices. Despite a slow start, Spanish manufacturers remain optimistic for the year ahead, anticipating stable demand and growth supported by investment plans and new product launches.