Spain PMI


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.”

The Central Bank expects the economy to grow 1.2% in 2014 and to accelerate to a 1.7% expansion in 2015. Moreover, the government announced that the Spanish economy would grow 1.2% this year before accelerating to 1.8% in 2015. FocusEconomics Consensus Forecast panelists expect GDP to expand 1.0% in 2014, which is unchanged from last month’s forecast. In 2015, panelists expect the economy to expand 1.6%.

Author: Ricard Torné, Lead Economist

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Spain PMI Chart

Spain PMI May 2014 0

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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