The HCOB Spain Manufacturing PMI rose to 51.9 in July 2025 from 51.4 in June, above the expected 51.5. This marked the strongest improvement in operating conditions so far this year, supported by a solid rise in output, driven by new projects and strengthening demand. New orders increased, recording the fastest growth since late 2024, though export sales remained sluggish. Job growth also reached its highest level since December 2024. On prices, input price inflation returned for the first time in three months, driven by supplier markups linked to tariffs and stock shortages. Output charges rose slightly as firms passed on higher costs. Purchasing activity fell for a sixth month, while input inventories and vendor performance deteriorated further, reflecting continued reliance on existing stock and extended delivery times. However, business confidence weakened to a three-month low, as global trade uncertainty and geopolitical risks clouded the outlook.