CdM | Spain’s manufacturing sector has slipped back into contraction territory in March, according to the PMI index, against a backdrop of significant geopolitical uncertainty, as the war in the Middle East dashed hopes of a short-term improvement seen in February.
“Both production and new orders fell, whilst confidence plummeted in the face of hostilities in the Middle East. Companies are extremely concerned about the prospect of a prolonged global economic slowdown amid a surge in inflation triggered by rising energy prices,” S&P Global Market Intelligence notes.
Spain’s seasonally adjusted manufacturing PMI fell to 48.7 in March. This figure is down from the 50 recorded in February and marks the third time in the last four months that the PMI has fallen below the 50-point neutral mark. In fact, this was the lowest reading since April 2025.
