SPAIN AUCTION RESULTS: Bono / Oblis / ObliEi

Slightly fewer services companies saw input prices increase relative to the manufacturing sector (40% versus 49%) but this was still a large number. And the survey points to the rate of inflation at the strongest for 11 months. We will get one more flash PMI and one more DMP and Agents' survey ahead of the April MPC decision and MPR are due for release with the PMI coming the day before the other two (on the revised released schedule). We place much more emphasis on the DMP survey and Agents' intelligence than on the PMIs. The headline services PMI was revised down to 50.5 from 51.2 flash and composite to 50.3 from 51.0 Highlights from the press release:

• "Around 40% of the survey panel reported an increase in their input costs during March, while only 2% noted a decline. This signalled a sharp acceleration in input price inflation to its highest since April 2025. Rising operating expenses were overwhelmingly linked to higher fuel and transportation costs, alongside elevated wage pressures and efforts by suppliers to pass on increased raw material prices."
• "Service providers pointed to a robust increase in their output charges in March and the rate of inflation was also the strongest for 11 months."
• "Higher output levels have been recorded in each of the past 11 months, but the latest expansion was only marginal and the weakest seen over this period. Some firms commented on a boost to activity from improved demand conditions at the beginning of 2026. However, many firms noted that the conflict in the Middle East had weighed on growth in March."

• MNI: UK MAR FINAL SERVICES PMI 50.5 (51.2 FLASH, 53.9 FEB)
• UK MAR FINAL COMPOSITE PMI 50.3 (51.0 FLASH, 53.7 FEB)