Spain: Composite PMI increases in February
The S&P Global Composite Purchasing Managers’ Index (PMI) rose to 55.7 in February from January’s 51.6. Consequently, the index moved further above the 50-threshold, signaling an improvement in business activity from the previous month.
The S&P Global Manufacturing PMI rose to 50.7 in February from 48.4 in January. Output returned to growth while new orders contracted at a softer pace. Moreover, employment increased from the previous month. Meanwhile, confidence remained relatively high thanks to hopes of demand recovery and improved market conditions. On the price front, both input and output prices increased at a faster pace than in January.
The S&P Global Services PMI rose to 56.7 in February from 52.7 in January. Faster increases in new orders and activity supported the reading. Moreover, jobs were added at a more sustained pace. In terms of prices, both input and output inflation accelerated. Lastly, business confidence strengthened amid hopes of a continued recovery in demand.
Commenting on the outlook, Wouter Thierie, economist at ING, stated:
“While the Spanish economy has shown a strong rebound in activity, it is still too early to conclude that this recovery will be sustained throughout the year. While easing supply issues and falling energy prices may provide a boost to activity, the ECB’s interest rate policy is expected to constrain economic growth.”