- Prior 56.7
What a beat. That's the highest reading since November 2021 as Spain's services sector sees its sharpest expansions in activity and new work in 16 months. That said, the rates of input cost and output charge inflation were historically sharp with output prices in particular continuing to rise at among the strongest rates on record. S&P Global notes that:
“With demand conditions continuing to improve, growth across the Spanish service sector gained momentum, according to the latest PMI survey data. In fact, upturns in both activity and new business strengthened further in March to reach 16-month highs. The sector’s current trajectory also translated into a positive outlook for the year-ahead. Companies remained upbeat in their growth projections amid hopes that a pick-up in the tourism industry would help to sustain the current improving demand conditions. That said, the overall degree of confidence fell below the series average in March and to its lowest level in three months, with nagging concerns about the current inflationary environment and the potential for further interest rate hikes reportedly acting as dampeners to confidence. Such concerns were seemingly justified as rates of inflation remained historically sharp and displayed limited signs of easing in the most recent survey period. It will certainly be interesting to monitor how the sector copes with sustained price rises and whether we may start to see a drop off in demand should firms continue to raise their output charges.”
