Spain PMI exceed expectations

Caixabank, Telefónica, El Corte Inglés or Iberdrola, the Spanish firms best prepared to confront 201969% of the Spain's companies consulted admit that the pandemic will have a significant negative impact on their business in the next six months

Composite and Services PMI, which is elaborated by the consultancy IHS Marlon, exceeded expectations for Spain. The PMI for services rose from 54.5 in February to 56.8 in March compared to the expected 55.

It recovered the levels of February 2018, accumulating four consecutive months of gains, distancing itself from the lows (52.5) it touched in September.

New business stands out, with the largest increase since 2018 (to 55.9 from 54.1). The PMI Composite rose to 55.4 from 53.5, when it was expected in March only to increase three tenths (to 53.8). Part of the improvement is accounted for by new orders, which passed to 54.7 from 52.1.

According to IHS Markit analyst, Paul Smith, the Spanish economy enjoyed a solid end to the first quarter of the year (Q12019) and the latest data are consistent with a slight acceleration in growth. However, the data hide a sectoral imbalance, given that the services sector showed a strong performance compared to a more moderate manufacturing sector.

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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.