Services sector pulls Spain away from euro area slowdown

Spain's recovery

Eurozone private sector activity in December maintained the previous month’s pace of deterioration, extending the contraction to seven consecutive months, according to the composite purchasing managers’ index (PMI), which repeated November’s reading of 47.6 points in the last month of 2023, anticipating the risk of the eurozone entering recession.

By contrast, as published yesterday by S&P Global, Spain’s services PMI rebounded from 51.0 points in its November reading to 51.5 points in December, beating the 51.0 point reading expected by the FactSet consensus analysts, and standing at its highest level since July. Any reading above 50 points followed an expansion in activity relative to the previous month, and below that level, a contraction in activity.

In their report, the analysts at the consultancy that compiles the index point out that in contrast to the economic weakness in Europe in general, Spain’s services sector seems to be charting its own course. Rather than succumbing to the general economic slowdown, service companies in Spain are still on an expansionary trajectory. In this regard, they point out that, although far from a full-blown boom, the resilience is surprising.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.