Services PMI In Line For Italy; Spain Misses

Spain Jul Services PMI missed expectations slightly at 51.9 (vs 52.3 exp), whereas Italy was slightly above (51.6 vs 51.4 exp). Some colour from the IHS Markit releases:

Spain: "As levels of incoming new business disappointed and firms continued to operate below capacity. Jobs were again cut, whilst expectations remained historically subdued. Operating expenses rose further, but profitability was again under pressure as firms enacted another round of output price discounting...several panellists indicat[ed] worries over a 'second wave' and the potentially damaging impact on their businesses."

Italy: "Business activity increas[ed] for the first time since February... Order book volumes were broadly stable, following five months of successive notable declines, while expectations with regards to activity over the year ahead strengthened to a six-month high...increased demand for inputs was reflected in higher costs...the rate of [output price] deflation was the softest since February, but marked nonetheless."