- Prior 55.1
- Composite PMI 53.7
- Prior 54.7
The expansion in Spain’s services sector slowed in August but growth conditions are still supportive, helped by a more positive demand environment. A thing to note though is that prices data showed a pickup in inflationary pressures. Input prices overall rose to the greatest degree since
February with firms pointing to higher supplier charges in general. So, that’s something to be wary of. HCOB notes that:
“Spain’s private sector economy continues to hold steady, maintaining a comfortable position despite a modest dip in the
HCOB Composite PMI in August. The slight slowdown in overall growth stems from a deceleration in service sector output.
However, this was partly offset by a notable acceleration in manufacturing activity growth, signalling a solid stabilisation
within the private sector. Overall, Spain’s economic performance remains strong, particularly when compared to its
Eurozone peers.
“The service sector remains in solid shape. On the demand side, business activity growth slowed slightly in August, yet new
business continued to develop steadily, in line with the previous month. These consistently positive trends in activity and
demand are reflected in recent developments in employment and capacity. With outstanding business rising notably amid
increasing sales, some panellists also point to shortages in capacity and staffing as key drivers of this surge. As a result,
demand for personnel has grown, with the corresponding index now expanding continuously for nearly three years.
“Service sector price inflation in Spain remains persistently high. Both input cost and output price inflation continue to exceed
historical averages and saw acceleration in August. Panellists frequently report sharp increases in supplier prices, alongside
rising fuel and staffing costs. Supported by strong sales and sustained demand, companies felt confident in passing these
costs on to clients through higher end prices
