Spain August manufacturing PMI 49.5 vs 50.3 expectedPrior 50.2It's not a good look in August for Spain manufacturing activity, with both output and new orders declining. The worsening business activity reflected some concerns over rising prices,especially for energy, with latest data showing a noticeableacceleration in overall input cost inflation.Meanwhile, supply-sidechallenges also remained evident, with typical lead times forthe delivery of inputs again deteriorating to a considerabledegree.Circling back to the drop in production, that is also in part due to the usual seasonality related to summerfactory shutdowns. However, the survey notes that the drop was primarily linked by panellists to a modest decline in new workamid reports of stagnant market conditions and demand. So, there's that.S&P Global notes that:“August proved to be a somewhat challenging monthfor Spain’s manufacturing sector, with output and neworders declining on the month amid stagnant marketdemand. Weakness was especially prevalent amongstcapital goods producers as firms continue to struggle tosecure investment and commitments to new contractsgiven the uncertainty that exists within the marketplace.“This uncertainty can be linked to the rollercoaster inprice setting that firms continue to experience in 2026.With energy costs picking up again in August, inputprice inflation has once again surged higher, placingnoticeable pressure on margins and meaning confidencein the outlook remained subdued. No wonder firmsremained reticent to hire or buy-in new inputs, with bothemployment and purchasing activity subsequently cutover the month.” This article was written by Justin Low at investinglive.com.