Spain May services PMI 56.9 vs 56.4 expected
Prior 56.2Once again, Spain continues to be the bright spot in the euro area. This marks the steepest rise in activity for over a year. HCOB notes that:“In May, Spain's services sector continued to expand. Activity and new business both saw substantial growth, with the Services PMI Business Activity Index rising to 56.9. This growth was driven by a strong increase in new business, which has now risen for six consecutive months. Panellists reported – as also seen in the manufacturing sector – higher overall demand and greater success in acquiring new customers. Particularly encouraging was the significant rise in export business, especially in key markets like France and Germany. "Spanish service providers are urgently seeking workers. Service providers continued to expand their workforce to manage growth, although the employment increase was the smallest since February. Despite the workforce expansion, staff numbers were often deficient, leading to a further rise in outstanding business – the steepest since April 2023. "The services sector continues to face the issue of rising prices. The primary reason is rising wages, which constitute a significant amount of expenses in the labour-intensive services sector. Consequently, service providers are passing these costs on to consumers. The cost pressures indicated by the PMIs are also reflected in official consumer price developments over the past three months, which have now alarmingly risen to 3.6%. If the ECB is about to lower interest rates in the June meeting, as we anticipate, there is additional concern about price developments in the coming months.” This article was written by Justin Low at www.forexlive.com.
- Prior 56.2
Once again, Spain continues to be the bright spot in the euro area. This marks the steepest rise in activity for over a year. HCOB notes that:
“In May, Spain's services sector continued to expand. Activity and new business both saw substantial growth, with the Services PMI Business Activity Index rising to 56.9. This growth was driven by a strong increase in new business, which has now risen for six consecutive months. Panellists reported – as also seen in the manufacturing sector – higher overall demand and greater success in acquiring new customers. Particularly encouraging was the significant rise in export business, especially in key markets like France and Germany.
"Spanish service providers are urgently seeking workers. Service providers continued to expand their workforce to manage growth, although the employment increase was the smallest since February. Despite the workforce expansion, staff numbers were often deficient, leading to a further rise in outstanding business – the steepest since April 2023.
"The services sector continues to face the issue of rising prices. The primary reason is rising wages, which constitute a significant amount of expenses in the labour-intensive services sector. Consequently, service providers are passing these costs on to consumers. The cost pressures indicated by the PMIs are also reflected in official consumer price developments over the past three months, which have now alarmingly risen to 3.6%. If the ECB is about to lower interest rates in the June meeting, as we anticipate, there is additional concern about price developments in the coming months.” This article was written by Justin Low at www.forexlive.com.
