Spain's manufacturing sector contracted for the seventh successive month in December, survey data from IHS Markit showed on Thursday.
The factory Purchasing Managers' Index fell slightly to 47.4 in December from 47.5 in November. A score below 50 indicates contraction in the sector.
The decline was principally driven by the sharpest reduction in output in 80 months. New orders were reduced for an eighth successive month, with firms commenting on an unstable demand environment.
Furthermore, the degree to which staffing levels fell was the sharpest recorded by the survey for just over six years.
Firms reported that prices for inputs were generally lower, largely due to a lack of demand. Facing reduced costs, and with competition remaining fierce, firms lowered their own charges for the fourth month.
Although worries over government policies and current demand persisted, confidence about the future improved at the end of 2019 to its best since June.