Spanish services sector growth continued in December, albeit at a slower pace, on the back of further improvement in demand and confidence amid muted cost inflation, survey data from Markit Economics showed Wednesday.
The Purchasing Managers’ Index for the services sector fell to 55.1 from 56.7 in November. Economists had expected the score to remain unchanged.
A PMI reading above 50 suggests expansion in the sector. Services growth has now lasted for 26 months and improved demand and promotional offers were reportedly behind the latest expansion, Markit said.
“The Spanish service sector ended 2015 with a sense of optimism, according to the latest PMI survey,” Markit economist Andrew Harker said.
“The data, collected prior to the general election on December 20th, signalled a further sharp rise in business activity, and improved optimism that growth will be maintained during 2016.”
Growth was witnessed across all sub-sectors with ‘financial intermediation’ and ‘transport & storage’ recording the fastest gains.
New order growth remained solid though the rate of increase eased to the weakest since November 2014. Consequently, backlogs and employment grew. Jobs were added for the 15th straight month.
Lower fuel prices caused input cost inflation to remain muted and the latest increase was weaker than the series average and broadly unchanged from the previous month.
Output prices decreased for the third time in the past four months as companies offered discounts to customers in order to boost new order growth.
Morale in the services sector improved for a second straight month to its highest level since April, mainly on hopes of strengthening economic conditions and subsequent growth of new business.
The material has been provided by InstaForex Company – www.instaforex.com