Spain’s manufacturing industry appeared to steady in February following two consecutive months of decline, although demand continued to be weak, according to a survey released on Monday by S&P Global.

The HCOB Spain Manufacturing Purchasing Managers’ Index (PMI) rose slightly to 50.0 in February from January’s nine-month low of 49.2.

A reading above 50 signals expansion, while a figure below 50 points to contraction.

Even with signs of stabilisation, new orders declined for a third straight month, although the pace of the drop was slower than in January. Overseas demand continued to pose difficulties, as companies pointed to US tariffs and adverse currency movements as key headwinds.

“Spain's manufacturing sector continues to struggle to gain traction,” according to Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank. “The current headline PMI reading of 50 signals stagnation, suggesting that the manufacturing sector entered this winter with less momentum.”

In addition, the survey also pointed to ongoing cost pressures, with input prices climbing to their highest level in 13 months, largely due to higher raw material costs, including aluminium and steel.

As a result, factory gate prices increased for the first time since August 2025, although the uptick was only modest, Reuters news agency reports.

Moreover, employment in the sector edged down again, continuing the job-cutting trend that started in September 2025. However, the rate of workforce reductions was the slowest seen in the past three months.

Despite these headwinds, companies maintained a positive outlook, expressing confidence that demand conditions would improve and that planned investments would bear fruit. Some businesses also indicated intentions to branch out into new overseas markets.