Sunday, 19 October 2025
Spain’s industrial sector picked up pace in August, offering a rare moment of optimism amid a year marked by slow growth and fragile demand. The latest figures from the national statistics authority show that production rose slightly compared to the previous month, and output levels were higher than a year earlier, helped by stronger performance in manufacturing and consumer-related industries.
The improvement was led by a rebound in factory activity producing machinery and other investment goods, alongside steady demand for consumer products. By contrast, output in energy and intermediate materials — often used by other manufacturers — remained weak, a reminder that parts of the economy continue to struggle with cost pressures and subdued global trade.
Market analysts said the recent upturn, though modest, points to greater stability across Spanish industry. The sector has been navigating rising input costs and uncertainty around energy prices, while also contending with mixed signals from export markets across Europe.
Private business surveys supported the official data, showing a steady increase in new orders and production volumes in August — the fastest pace recorded in nearly a year. Many firms reported that falling input costs and easing supply chain constraints had improved confidence, although hiring intentions remain cautious.
Spain’s factories have endured several years of uneven recovery since the pandemic, with production repeatedly disrupted by inflation spikes and slower global demand. The latest results suggest that momentum may be returning, but economists caution that further progress will depend on energy stability, stronger investment, and steady demand from key trading partners in the months ahead.
While modest, August’s rebound hints at a more balanced footing for Spanish manufacturing — one that could help support broader economic growth heading into the final quarter of 2025.
Source: INE
