Spain Services PMI2011-2020 Data | 2021-2022 Forecast | Calendar | Historical

The IHS Markit Spain Services PMI slumped to 42.4 in September 2020 from 47.7 in the previous month, well below market expectations of 46.3. The latest reading indicated an accelerated rate of contraction that was the sharpest since May. Incoming new work fell for the third month in a row amid reports of an intensification of the COVID-19 crisis, with new export orders down severely and for a seventeenth successive month as quarantine restrictions on travelers from abroad were having a noticeable impact on business. In addition, work outstanding and employment declined for a seventh successive month. On the price front, operating expenses continued to rise, while output charges fell again due to weak demand and competitive pressures. Finally, confidence about the future improved to a three-month high, though remaining well below the historical average, on hopes of a strong resumption of activity and sales once the pandemic was brought under control.

The IHS Markit Spain Services PMI fell to 47.7 in August of 2020 from 51.9 in the previous month and below market expectations of 48. The reading represented a return to falling activity following two months of growth, amid reports that fresh outbreaks of the global coronavirus disease 2019 pandemic was depressing tourist activity and leading to ongoing uncertainty. New orders declined for a second successive survey period and at the fastest rate since May; backlogs of work declined for a sixth successive month, and job losses were again recorded. On the price front, input costs increased for third month, although the latest rise in costs was the weakest in this sequence; while output prices dropped markedly and extended the current period of falling prices to six months. Confidence about the future softened to a three-month low as an increasing number of firms signalled worries about the trajectory of the COVID-19 pandemic and its impact on economic activity.

The IHS Markit Spain Services PMI rose to 51.9 in July 2020 from 50.2 in the previous month but slightly below market expectations of 52. The reading pointed to the second consecutive expansion in the services sector and the sharpest since February, as businesses continued to restart operations following lockdowns due to the coronavirus pandemic. Output rose modestly while new orders fell back into contraction territory albeit marginally. Job losses were also recorded despite reports of some staff being brought back from furlough. On the price front, input cost inflation slowed while output charges continued to drop. Lastly, sentiment remained positive, still well below its historical trend with many firms signalling considerable uncertainties about the future and worries over a ‘second wave’ and its impact.

The IHS Markit Spain Services PMI rose to 50.2 in June 2020 from 27.9 in the previous month, easily beating market expectations of 45.9 and suggesting there was a stabilization in activity following the recent steep downturn caused by the coronavirus pandemic. New business volumes increased slightly, with several companies reporting that the virus continued to have an adverse impact on demand, while backlogs of unfinished work declined for a fourth successive month and staffing levels were also cut again. On the price front, input costs rebounded firmly in June, following two months of unprecedented declines. Output charges, however, continued to drop as the business environment remained extremely challenging and companies were offering lower charges to clients in a bid to maintain business and secure new work. Looking ahead, business confidence improved to the best since February.