November 06, 2024 08:22 GMT
SPAIN DATA: October Services PMI Below Consensus, But Still Expansionary
SPAIN DATA
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The Spanish October services PMI remained in expansionary territory at 54.9, but was unable to meet analyst expectations of 56.6 (vs 57.0 prior). The composite PMI was 55.2 (vs 56.3 cons and prior), following Monday’s strong manufacturing PMI.
There were some indications that the strong services activity levels are feeding through into increased inflationary pressures. Note that Spanish services HICP inflation was 3.4% Y/Y in September (vs 3.7% prior).
Key notes from the release:
- “Supporting activity in October was a combination of marketing, higher employment and another round of new business growth”.
- “Firms remained sufficiently encouraged by the positive trends in activity and new business to add to their workforce numbers in the latest survey period. The replacement of leavers from earlier in the year was also noted”.
- “Operating cost inflation was driven higher in October by frequent reports of raised salary costs”.
- “Firms took advantage of strong market conditions to pass on higher input costs wherever possible, leading to another marked increase in overall output charges during October”.
- “Confidence in the future remained high”.
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