SPAIN DATA: Services PMI Expansionary For 15th Consecutive Month

The Spanish November services PMI fell to its lowest since January at 53.1 (vs 54.9 prior), a little below the 53.3 expected. This still marks the 15th consecutive month in expansionary territory, though.  As was also noted in Monday’s manufacturing PMI, the recent flooding had a negative impact: “Growth rates did however fall since October, largely due to the adverse impact of flooding in some areas of the country”

Key notes from release:

• “Panellists reported that underlying market demand remained positive, but flooding in some areas of Spain limited gains in both activity and new work”.
• “New export business was slightly lower, dropping for the first time since last February amid evidence of reduced market activity and the negative impact on demand of high prices”.
• “Spanish service providers limited their output price increases during November”
• “That was despite another steep increase in input costs”…“Panellists linked the upturn in operating expenses to a combination of higher supplier charges and increased wages for staff”.
• “This in turn was partially linked to a rise in the demand for workers, with Spanish service companies adding to their staffing levels for a twenty-sixth successive month in November”
• “Finally, looking ahead to the coming 12 months, companies are forecasting an increase in activity from present levels”