Spain’s service sector expanded at a weaker pace for the third successive month in February amid political uncertainty, survey data from Markit Economics showed Thursday.
The headline seasonally adjusted Business Activity Index dropped to 54.1 in February from 54.6 in the previous month. Economists had expected the index to fall to 54.0.
However, any reading above 50 indicates expansion in the sector.
Moreover, the rate of growth slowed for the third month in a row and was the weakest since November 2014.
Political uncertainty was also a factor behind a first reduction in outstanding business in four months.
New orders grew at the weakest pace in fifteen months in February. Service providers continued to increase employment during the month.
On the price front, input prices climbed in February, mainly due to higher staff costs. Nonetheless, the rate of inflation was modest overall. Companies lowered their selling prices for the fourth consecutive month.
The material has been provided by InstaForex Company – www.instaforex.com