- Prior 56.6
- Composite PMI 55.1
- Prior 56.0
Spain's services sector continues to post strong growth in November driven mostly by domestic demand. Employment conditions are also holding up while the outlook continues to stay more positive, so it is still one of the brighter spots in Europe. HCOB notes that:
“Spain’s economy remains robust, and GDP is likely to grow strongly in the fourth quarter, as suggested by the HCOB PMI data for October and November. In November, the HCOB Composite PMI showed that the private sector continued to expand at a solid pace, with services outperforming manufacturing.
“Order book developments in the services sector remain healthy, though momentum has eased slightly. This in part is driven by some underlying weakness in international trade which fell in November for the first time in five months.
“Demand for additional staff in services is rising. High capacity utilisation means companies are struggling to keep up with workloads. Positive and stable business expectations create an environment where firms are confident about hiring new employees.
“The trend in selling prices lost some momentum in November, but cost inflation remains elevated. Cost pressures stem mainly from energy and wages, as shown by anecdotal evidence. Output prices in contrast rose at the slowest pace this year. Companies passed on higher costs to customers while partly offering discounts to stimulate demand. All in all, the relatively high price indices remain a concern, especially without any alleviation of wage pressures.”
