June 05, 2024 07:24 GMT
Tight Labour Market Pushes Input Prices Higher
SPAIN DATA
The Spanish May services PMI was stronger-than-expected at 56.9 (vs 56.5 cons, 56.2 prior), mirroring the outperformance seen in the manufacturing PMI on Monday. The composite PMI was 56.6 (vs 56.2 cons, 55.7 prior).
Details suggest a still-tight labour market continues to put upward pressure on input prices, with labour-driven capacity constraints and increases in wages cited.
Key notes from the release:
- “Driving activity higher was a marked and accelerated increase in new business”…”Panellists noted that demand had improved, and they had greater success in securing new customers”.
- “Service providers added to their workforce numbers in response to the accelerated growth in activity”… “However, staff numbers were deemed to be insufficient in several cases, and this helped to explain another rise in work outstanding”.
- “input costs continued to rise steeply. Wages and salaries were widely reported as the principal drivers”.. “In response, many companies increased their own charges”.
Keep reading...Show less
156 words