Spain: Composite PMI drops in March
The S&P Global Composite Purchasing Managers’ Index (PMI) fell to 53.1 in March from 56.5 in February, reflecting drops in both the services and manufacturing sectors amid Russia’s invasion of Ukraine. However, the index remained above the 50-threshold, signaling expanding business activity over the previous month.
The S&P Global Manufacturing PMI dropped to 54.2 in March from 56.9 in February. New business fell for the first time since January 2021. Meanwhile, output expanded at the slowest rate in 14 months. This was largely due to supply bottlenecks and rising inflation, both of which have been exacerbated by the war in Ukraine: in March output prices rose at the sharpest pace on record, with business confidence plunging to the lowest level since May 2020.
Meanwhile, the S&P Global Services PMI fell to 53.4 in March from 56.6 in February, amid softer increases in new business activity. A transport strike and war-induced uncertainty outweighed the positive effect of easing pandemic concerns, with confidence plunging to its lowest level in nearly one-and-a-half years. However, firms hired additional staff at a faster pace.
Commenting on the Manufacturing PMI, Paul Smith, economic director at IHS Markit, stated:
“Production continued to be hampered by acute delivery delays, reflective of not only challenges in global supply chains but also domestic transport strikes as protests mounted within Spain over the high price of fuel.”
Commenting on the Services PMI, Smith noted:
“Amid rising energy and fuel bills, plus ongoing increases in vendor prices at a time of continued supply chain difficulties, operating expenses are rising at an unprecedented rate. With a transport strike adding to company woes, output price inflation also hit new heights as firms had little choice but to provide some protection for their margins.”