Spain’s final service PMI dropped to 49.0 points lower in September, falling below the 50 threshold and lower than previous reading of 50.4 in the previous month, the Markit Economics reports confirmed.
“The Spanish service sector failed to show much sign of a recovery during September as activity fell back in response to weaker new order growth which itself had been supported by further sharp discounting. One bright spot from the latest survey was that companies were at their most optimistic about the future for nearly three-and-a-half years, suggesting that Spanish service providers are seeing some light at the end of the tunnel.” Andrew Harker, a senior economist at Markit commented..
Spain Service PMI – Manufacturing Activity
The manufacturing PMI for Spain in September was above the 50 threshold for a second month, with a reading of 50.7 points, compared to 51.1 reported in the previous month.
“The September manufacturing PMI for Spain confirms the picture of gradual improvement seen in the third quarter of the year, supported again by solid growth of exports. It remains to be seen whether this stabilization can be translated into a period of expansion or whether the sector will slip back into contraction again,” Andrew Harker said.
“With domestic demand remaining weak, much seems to depend on the ability of manufacturers to continue generating strong export sales”, he added.
Spain has struggled to recover from its seven consecutive quarters of recession and the recent macroeconomic report released showed that the country’s economy has still not recovered.
Spain’s economy contracted 0.1% in the second quarter, while on an annual basis; the country’s economy shrank 1.7% due to the weaker domestic demand.
According to the latest reports released, Spain is expected to remain in recession this year with a slowdown in both consumer and investment spending, along with the high employment figures.
Meanwhile Spain retail sales declined in August, dropping 4.5%, while the country’s industrial output lost 1.4% in July.
Retail sales in Spain dropped again in August, falling 4.5%, while industrial output declined 1.4% in July, measured over the year and working-day adjusted.
The country’s high unemployment rate dropped to 26.26% in the second quarter from previous record of 27.16% in the previous quarter.
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