Spain PMI

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Spain: Economic conditions improve in December on services

January 6, 2015

The Markit Purchasing Managers’ Index (PMI) Composite Output Index rose from 53.8 in November to 54.3 in December. As a result, the index is resting comfortably above the 50-threshold that separates expansion from contraction in business conditions.

The Markit Spain Services PMI remained firmly entrenched in positive territory in December, as both business activity and new business rose at sharper rates. As a result, employment increased marginally. The financial intermediation, and transport and storage sectors were December’s best performers. Markit analysts added that, “December’s data pointed to a stronger expansion of the Spanish service sector at the end of 2014, although there has been a little underlying loss of momentum when we look at the trend over the final quarter as a whole.”

The Markit Spain Manufacturing PMI continued to expand strongly in December, although it moderated slightly. The print mostly reflected that output and new orders expanded at weaker rates, while employment hit a seven-and-a-half year high. Markit analysts stated that, “December’s PMI results provide further welcome news for the Spanish manufacturing sector. Output continued to expand at a solid pace and manufacturers were able to further obtain new contracts despite raising their charges marginally. Furthermore, workers are increasingly feeling the benefit of growth with many companies continuing to expand their staff levels. The combination of increased new business, work in the pipeline and rising employment suggest that production growth should continue in the New Year.”

Both the Central Bank and the government expect the economy to grow 2.0% in 2015. FocusEconomics Consensus Forecast panelists expect GDP to expand 1.8% in 2015, which is unchanged from last month’s forecast. In 2016, panelists expect the economy to increase 2.0%.


Author: Ricard Torné, Lead Economist

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Spain PMI December 2014

Note: Markit Spain Purchasing Managers’ Index Composite Output Index. A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: Markit.


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