SPAIN DATA
Wages continue to be cited as a source of inflationary pressure though (note that Spanish services HICP has hovered around 4% Y/Y for the last 11 months).
Key notes from the release:
- “Panellists broadly attributed March’s rise in activity to a combination of increased commercial/promotional work plus another month of higher new business volumes”.
- “There were reports of firmer demand, both from domestic and international sources”.
- “As new business grew, panellists experienced some pressure on their capacity as evidenced by a rise in work outstanding for a third successive month. Growth was modest, however, dampened in part by another expansion in staffing levels”
- “There are expectations that activity will benefit from a wider improvement in the economic environment”
- “There were again widespread reports from panellists that higher salary costs were a key driver of the upturn in overall operating expenses”.
- “Firms sought to protect margins by passing on higher costs to clients wherever possible”
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