Latest data released by Markit - 3 September 2020
- Prior 51.9
- Composite PMI 48.4 vs 49.3 expected
- Prior 52.8
The recovery in Spain's services sector runs into a halt in August, which reflects similar sentiment in the region as fears surrounding a second wave of virus infections start to grow. The lack of incoming new business and the relatively poor summer tourism season are among what is weighing on the recovery. Markit note sthat:
"August's services data will dash the hopes of those looking for a v-shaped recovery in Spain's services economy as activity fell on the back of a lack of incoming new business.
"Anecdotal evidence from companies suggests that sectors related to tourism and social contact are suffering the most. Foreign visitors are reported to be well down for the time of the year and activity is suffering as a result.
"With COVID-19 flare-ups likely to continue in the near-term at least, firms are understandably cautious about the future. Indeed, many foresee difficult times ahead especially as investment decisions are being postponed and job losses are expected to mount later in the year."