La sagrada familia in Spain

Spain PMI December 2018

Spain: Composite PMI ticks down in December

Reflecting weaker activity growth in the manufacturing sector, the IHS Markit composite Purchasing Managers’ Index (PMI) edged down from 53.9 in November to 53.4 in December. Nevertheless, the index remained above the 50-point threshold, indicating healthy expansion in business activity.

The IHS Markit services PMI remained unchanged at November’s 54.0 in December. The continuation of strong business activity came on the back of robust growth in incoming new business from domestic costumers. Foreign sales, on the other hand, declined for the fifth consecutive month, partly due to the negative impact of French protests. Robust domestic demand translated into rising backlogs of work, and the pace of staff recruitment accelerated to the fastest rate since August. On the price front, operating costs climbed at a marked pace, partly due to rising labor costs. This prompted companies to increase their selling prices. Lastly, business confidence strengthened, thanks to improved investment prospects and better perceptions of economic conditions.

Meanwhile, the IHS Markit Manufacturing PMI edged down from 52.6 in November to to an over two-year low of 51.1 in December, indicating a softer improvement in operating conditions compared to the previous month. Slower expansions in output and new orders were largely behind the decrease. That said, demand from the U.S. and Central America was robust and continued to support export orders. However, backlogs of work declined somewhat, and job creation was among the slowest recorded in the past five years. Regarding prices, input cost inflation slowed notably, largely due to lower oil prices. Subsequently, output prices nearly stagnated. Finally, despite the general deterioration of conditions, business confidence hit a three-month high amid heightened expectations on foreign sales.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest