Spain: Composite PMI improves in March
April 5, 2016
The Markit Purchasing Managers’ Index (PMI) Composite Output Index increased to 55.1 in March from 54.5 in February, which had marked the lowest reading since December 2014. As a result, the index still lies above the 50-threshold that separates expansion from contraction in business conditions.
The Markit Spain Services PMI increased from 54.1 in February to 55.3 in March, which marked the highest reading in four months. As a consequence, the index still lies in expansionary territory. Markit analysts commented that, “the pick-up in service sector growth in March is something of a relief following a slowdown in previous months, and suggests that the Spanish economy was able to maintain forward momentum during the first quarter of the year. Elsewhere, while output prices were raised for the first time in five months, there is still little evidence of any meaningful inflationary pressure returning to the sector.”
Meanwhile, the Markit Spain Manufacturing PMI dropped, falling from February’s 54.1 to 53.4. Despite the fall, the index still lies above the 50-threshold that separates expansion from contraction in the manufacturing sector. According to Markit, the result came on the back of weaker growth in both output and new orders. However, job creation remained solid in March.
Author: Dirina Mançellari, Senior Economist