Spain PMI

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Spain: Economic conditions slow markedly in November on services

December 3, 2014

The Markit Purchasing Managers’ Index (PMI) Composite Output Index declined from 55.5 in October to 53.8 in November. Although November’s reading marked a nine-month low, the index is still resting comfortably above the 50-threshold that separates expansion from contraction in business conditions.

The Markit Spain Services PMI fell to a 12-month low in November, mainly due to weaker rates of expansion in both output and new business. Nevertheless, the Services PMI remains firmly entrenched in positive territory. The financial intermediation, and transport and storage sectors were November’s best performers. Markit analysts added that, “November was a difficult month for service providers in Spain, with growth of new work slowing to the weakest since October 2013. This led companies to work through outstanding business at a sharp pace, but even this couldn’t prevent the rate of expansion in activity easing to the slowest.”

The Markit Spain Manufacturing PMI jumped in November to the highest rate of expansion since June 2007. The print mostly reflected strong gains in output and new orders as well as a faster pace in job creation. Markit analysts stated that, “the Spanish manufacturing sector shrugged off any concerns around difficulties in other parts of the Eurozone during November, posting the fastest rises in output and new orders since mid-2007. The sector has now seen a year of unbroken monthly increases in production.”

Both the Central Bank and the government expect the economy to grow 1.3% in 2014 before accelerating to 2.0% in 2015. FocusEconomics Consensus Forecast panelists expect GDP to expand 1.2% in 2014, which is unchanged from last month’s forecast. In 2015, panelists expect the economy to expand 1.8%, which is also unchanged over the previous month’s estimate.


Author: Ricard Torné, Lead Economist

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Spain PMI November 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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