01.09.202607:26:29UTC+00Spain Manufacturing Sector Contracts in August

The S&P Global Manufacturing PMI slipped to 49.5 in August 2026 from 50.2 in July, its lowest level since March and below market expectations of 50.1. Both output and new orders declined, underscoring muted domestic demand and softer external demand, with tariffs further dampening export activity. In response, firms reduced stocks of finished goods and inputs, while purchasing activity contracted for the ninth consecutive month. Employment also fell for the twelfth straight month, though the drop in backlogs of work was aided in part by lower capacity utilisation. Supply conditions remained strained, as disruptions related to the Middle East conflict continued to affect shipping routes and material availability. Rising energy and transport costs drove a marked acceleration in input-price inflation, prompting manufacturers to increase their selling prices. Looking ahead, business confidence deteriorated further, with persistent concerns about elevated energy costs and fragile demand weighing on the production outlook.