Spanish industry grows 2.3% in 2025

January 2026 INE data confirms a solid industrial recovery: the Industrial Production Index (IPI) rose 2.3% in 2025 vs 2024, beating the euro zone average (1.1%).

Leading sectors

• Motor vehicles: +5.8% (plug-in hybrid push)
• Electrical equipment: +4.9% (solar self-consumption boom)
• Industrial machinery: +3.7% (post-COVID renewal)
• Metal products: +2.8% (construction recovery)
• Food and beverage: +2.5% (stable, exports +6%)

Lagging sectors

• Textiles: -1.2% (Asian competition + consumption drop)
• Chemical industry: +0.4% (energy cost still high)
• Wood industry: -0.8% (new housing construction decline)

Why Spain beats EU average

• Soft landing of energy costs (Iberian exception until 2024)
• Next Generation investment focused on industrial
• Internal recovery: Spain GDP +2.7% (2025) vs +0.9% EU
• Manufacturing tourism: revival of tourism-linked industries

2026 risks

• Geopolitical conflicts (Russia-Ukraine, Middle East) affecting supply
• ECB rates: still 2.5-3% (expensive investment)
• Wage inflation accumulated 2022-2025 at 18% (margin pressure)
• US tariffs on European products (under negotiation)

Forecasts

Funcas projects industrial growth of +1.8% in 2026, more moderate but still positive. Consultancy AFI is more optimistic (+2.1%) thanks to final Next Gen aid arriving.

What it means for SMEs

• More orders, but price pressure
• Rising labor costs (metal sector collective agreement in negotiation)
• Tighter margins: digitalization isn't luxury, it's survival
• Export opportunity: weak euro helps sales to US/UK

SMEs that have digitalized and controlled energy costs in 2026 will be well-positioned. Others face financial asphyxiation risk.

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