Spain: Economic conditions weaken in February
March 3, 2016
The Markit Purchasing Managers’ Index (PMI) Composite Output Index fell from 55.3 in January to 54.5 in February, which marked the lowest reading since December 2014. Despite the decrease, the index still lies above the 50-threshold that separates expansion from contraction in business conditions.
The Markit Spain Services PMI fell to a 15-month low in February, decreasing from January’s 54.6 to 54.1. However, the index still lies in expansionary territory. Markit analysts commented that, “while the latest set of PMI data for Spanish services companies paint a broadly positive picture of the state of the sector, there are some headwinds which appear to be limiting the scope for growth. The most obvious of these is political uncertainty, which was linked to a dip in sentiment as well as a slower expansion of new business in February as some clients operate a wait-and-see approach before committing to new projects.”
Meanwhile, the Markit Spain Manufacturing PMI also dropped, falling from January’s 55.4 to 54.1. Despite the fall, the index still lies above the 50-threshold that separates expansion from contraction in the manufacturing sector. According to Markit, the result came on the back of slower growth in output, although the rate remained sharp overall. Job creation also picked up steam while low oil and steel prices caused a sharper fall in input costs.