He Spanish manufacturing sector registered growth in April, which means «a positive change» regarding the results recorded in the PMI index of the previous month. Nevertheless, «The war in the Middle East continued to have a notable impact on the industry». As explained by S&P Global Market Intelligence, «a more detailed analysis of the latest data reveals that this growth was driven in part by the accumulation of stocks by clients, since Companies rushed to ensure product supply in the face of shortages and supply chain disruption caused by the war in the Middle East.» Specifically, Spain’s seasonally adjusted manufacturing PMI index stood at 51.7 in April, compared to 48.7 recorded in March, indicating a modest improvement in operating conditions for the first time since November 2025. The index was boosted by a solid increase in production and the pace of growth was the strongest in five months. This increase in production was due in part to the increase in new orders, which grew only marginally in April, but still marked a notable rebound compared to the strong contraction registered in March. However, the growth in new orders partly reflected the build-up of stocks by customers due to the uncertainty generated by the war in the Middle East, especially in relation to supply chains, product availability and prices. In fact, the information collected from the companies surveyed indicates a fragility in underlying demand, due to uncertainty caused by war. This fact was especially observed in the international demand, since new export orders decreased for the eighth consecutive month in April, although to a noticeably lesser degree than in March. CONFIDENCE AND PRICES «In general, optimism remains historically low and companies express notable uncertainty regarding the outlook. In fact, in the midst of the energy crisis and supply disruptions, input prices are rising at a dizzying paceat a level not observed since mid-2022,» they add in S&P Global Market Intelligence. They believe it is crucial to highlight that the impact on prices was also significant, since sales price inflation reached its highest level in almost three and a half years: «Although considerable uncertainty remains about the duration of the price and supply crisis, the willingness of a notable number of companies to raise their prices increases the possibility that they are already occurring second round effects of inflation». Thus, the uncertainty about the future trajectory of demand and sales, again linked to the impact of the war in the Middle East, made Confidence in prospects in April to remain well below trend. While some companies plan to strengthen their business activities and launch new products, which helped explain the improvement in sentiment compared to the recent low recorded in March, many concerns about price developments and supply chain disruptions remained. The April survey revealed a considerable acceleration of inflation rates. Selling prices increased at the steepest pace since November 2022, primarily due to rising input costs. The latest data indicates that input prices have increased at the fastest rate since June 2022, and therefore at one of the highest rates recorded in the history of the study (which began in early 1998). It was reported that the war in the Middle East increased prices of a range of products related to energy, fuel and transport. Companies surveyed reported numerous cases of product shortages, citing suppliers having low stock levels. The net impact was the largest monthly deterioration in delivery times since mid-2022. Although some companies were willing to buy supplies and secure their inventories in the face of rising prices and product shortages, Overall purchasing activity decreased for the fifth consecutive month in April, although the decline was again only marginal. Meanwhile, delivery delays and higher production needs in April put some pressure on raw material stocks, which decreased slightly overall. On the contrary, stocks of finished products fell sharply and to the greatest extent since the beginning of 2024. Some respondents noted a increased pressure from customers to fulfill orders as quickly as possible. Finally, Staffing numbers decreased for the eighth consecutive month. This slight contraction reflected some uncertainty in the production outlook and occurred despite an increase in overall workload. The April survey revealed a slight increase in backorders for the first time since October 2025. However, companies indicated that this rebound was temporary and reflected sales that customers interested in securing stocks had brought forward.
