Spain: Economic conditions moderate in May
June 4, 2014
The Markit Purchasing Managers’ Index (PMI) Composite Output Index inched down from 56.3 in April to 55.6 in May. The PMI has rested comfortably above the 50-threshold that separates expansion from contraction in business conditions for eight consecutive months.
The moderation in overall output mostly reflected a decline in the Markit Spain Services PMI, which fell from 56.5 in April to 55.7 in May. Although business sentiment remained strong in May, “there was further evidence of a reluctance among companies to increase staffing levels.” The Markit Spain Manufacturing PMI rose from 52.7 in April to 52.9 in May due to, “solid expansions in output and new orders.” In addition, companies, “upped their rate of purchasing to the fastest in more than four years, suggesting less of a reluctance to hold inventories amid positive expectations for the future.”