Spain: Composite and Services PMIs improve in June
July 5, 2016
The Markit Purchasing Managers’ Index (PMI) Composite Output Index increased slightly from 54.8 in May to 55.7 in June, which marked the highest reading in seven months. As a result, the index remains above the 50-threshold that separates expansion from contraction in business conditions.
Moreover, the Markit Spain Services PMI inched up from 55.4 in May to 56.0 in June. The previous month’s reading had marked the highest level in six months. Consequently, the index continues in expansionary territory. In June, jobs grew at the fastest rate since July 2007 and new orders improved over the previous month. Markit analysts commented, “a combination of higher new business and positive expectations regarding future workloads led to another monthly rise in employment, the twenty-first in as many months.”
Finally, the Markit Spain Manufacturing PMI also improved slightly in June, increasing from May’s 51.8 to 52.2. The index remains above the 50-threshold that separates expansion from contraction in the manufacturing sector. According to Markit, the result came on the back of stronger growth in output.
Author: Dirina Mançellari, Senior Economist