Spain: Spain services PMI shows accelerated growth in March
The HCOB Spain Services Purchasing Managers’ Index (PMI) rose to 56.1 in March from 54.7 in February. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in services sector operating conditions compared to the previous month.
The key drivers behind the latest PMI reading include a marked and accelerated increase in new business volumes, which has stretched capacity and led firms to hire additional staff, the most significant increase in ten months.
On the pricing front, average operating expenses saw a sharp increase in March. Firms have attempted to pass these increased costs onto clients, leading to a continued rise in output charges and extending the inflationary trend to three years. Business sentiment remained positive, albeit slightly lower than February’s two-year high, buoyed by expectations of sustained sales growth and an improving economic environment.