Spain: Services PMI rises in May
The HCOB Spain Services Purchasing Managers’ Index (PMI) rose to 56.9 in May from 56.2 in April. As a result, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in services-sector business activity compared to the previous month.
May’s upturn was primarily driven by a stronger increase in new business, marking the sixth successive month of new work growth. Against this backdrop, business activity rose at the steepest rate in over a year. This prompted service providers to continue expanding their workforce, albeit at the softest pace since February.
On the price front, input cost inflation accelerated to a three-month high. That said, the rate of inflation in output prices eased for the third consecutive month to its lowest level since last November. Lastly, business sentiment improved, matching February’s two-year high, driven by expectations of continued positive trends in activity and sales amid broader hopes for a more stable economic and financial environment, with some firms anticipating interest rate cuts to stimulate market demand and activity.