SPAIN DATA: Composite PMI Still Comfortably Expansionary Despite Services Miss

The Spanish services PMI was a little weaker-than-expected at 54.9 (vs 56.8 cons, 57.3 prior). Taken alongside a lower-than-expected manufacturing PMI on Monday, the composite index ticked down to 54.0 (vs 55.9 cons, 56.8 prior). The composite index has nonetheless been in expansionary territory since November 2023, notably outperforming other major Eurozone economies.

We highlight that input price increases were passed through to output charges in January. A similar dynamic was also seen in the manufacturing PMI. 

Key notes from the release:

• “The rate of growth in new business in January was rapid, rising to its highest level since April 2023. Panellists noted that demand for their services was strong, and that commercial activities had helped to support new business gains”…. “Latest data did however suggest that growth was centred on domestic markets”
• “In response to higher overall workloads, service providers chose to take on additional staff at a rapid and accelerated pace”.
• “Panellists also noted an upturn in typical labour expenses during January”… “Suppliers were also reported to have increased their prices”… “firms increased their output charges in response to higher operating expenses”.