Spain’s service sector growth accelerated in April with activity, new business and employment increasing at rates not seen since prior to the economic crisis.
The Purchasing Managers’ Index for the service sector rose to 60.3 in April from 57.3 in March. The reading signaled a substantial growth and the sharpest since November 2006.
A reading above 50 indicates expansion and the latest score well exceeded the expected level of 57.4. Panelists generally foresee growth continuing over the coming year.
The rate of growth in new business quickened for the fifth successive month in April. Strong growth of new orders led to a fifth successive monthly increase in backlogs of work.
Service providers continued to take on extra staff in line with rising workloads. The rate of input cost inflation slowed in April and output prices continued to fall.
April was a very encouraging month for Spanish service providers as growth of a number of key variables including activity and employment quickened, Andrew Harker, senior economist at Markit and author of the report said. The data suggest a strengthening of the economic recovery in Spain.
The material has been provided by InstaForex Company – www.instaforex.com