Spain PMI May 2022

Spain

Spain: Composite PMI unchanged in May

June 27, 2022

The S&P Global Composite Purchasing Managers’ Index (PMI) remained unchanged at April’s 55.7 in May, reflecting a stronger manufacturing sector offsetting softer growth in the services sector. Consequently, the index remained above the 50-threshold, signaling expanding business activity over the previous month.



The S&P Global Services PMI dipped to 56.5 in May from 57.1 in April, signaling somewhat softer increases in activity and new business. Meanwhile, firms hired additional staff at a stronger pace. On the price front, input costs increased at sustained albeit milder pace. In response, companies hiked output prices at a somewhat lower pace. Lastly, confidence remained firmly in positive terrain.



Meanwhile, the S&P Global Manufacturing PMI rose to 53.8 in May from 53.3 in April. Production continued to increase, while new orders were unchanged. Meanwhile, exports declined albeit slightly. On the price front, input prices continued to increase at a marked pace, which translated into another sustained increase in output prices. Lastly, confidence regarding the future lost some ground amid concerns over inflation and geopolitical uncertainties.



Commenting on the Services PMI, Paul Smith, economics director at S&P Global, stated:

“May saw the continued expansion of the Spanish services economy as any market instabilities related to the war in Ukraine or high inflation were more than offset by the release of pent-up pandemic related demand. Moreover, sales wins were broad-based, with a welcome uplift in tourism-related business noted over the month.”



Commenting on the Manufacturing PMI, Smith again noted the importance of inflation:

“Although Spain’s manufacturing economy continued to grow in May, stagnant demand and ongoing severe inflationary pressures led to ongoing concerns about the underlying health of the sector.”

FocusEconomics Consensus Forecast panelists project that GDP will expand 5.6% in 2022, which is down 0.3 percentage points from last month’s forecast, and 3.5% in 2023.


Author: Massimo Bassetti, Senior Economist

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