Spain: Economic conditions improve on services; manufacturing gauge eases slightly
August 5, 2014
The Markit Purchasing Managers’ Index (PMI) Composite Output Index ticked up from 55.2 in June to 55.7 in July, which marked a three-month high. As a result, the index is resting comfortably above the 50-threshold that separates expansion from contraction in business conditions, as it has for nine consecutive months.
The Markit Spain Services PMI improved in July and marked a three-month high. July data showed that new business expanded at the fastest pace since November 2006, which supported job creation and a pick-up in the service sector. In addition, companies continued to lower their output prices.
The Markit Spain Manufacturing PMI retreated slightly from June’s multi-year high on lower rates of expansion in output and new orders. That said, the manufacturing sector continues to record solid growth. Markit analysts added that, “firms displayed a measure of confidence regarding the near-term outlook as they took on extra staff and increased stocks of purchases, ending a sequence of decline which lasted almost seven years. Meanwhile, there appears to be some cost inflationary pressure building within the sector for the first time since late 2012.”