Latest data released by Markit - 4 November 2021
- Prior 56.9
- Composite PMI 56.2
- Prior 57.0
Spanish services sector activity held up last month as incoming new business rose to the
sharpest degree in four months and COVID-19 restrictions
continued to be lifted.
Employment growth also picked up but the downside is that operating costs saw a record increase amid rising input costs, leaving firms with little choice but to try and pass these higher expenses onto clients. Markit notes that:
"Spain's service sector growth broadly steadied during October, edging only slightly lower and, in a sign of a continued strong underlying demand currents, levels of new business increased at the best rate for four months.
"That suggests growth should retain some momentum in the near-term, although downside risks remain in play, especially around rising cost pressures - which in October increased at a record pace - whilst there were some reports that sourcing goods for use in service provision remains challenging.
"This was encapsulated in the latest sentiment data, which showed confidence remained elevated, but a little softer compared to earlier in the year as worries over inflation partially offset the positive projections for growth in demand and activity."
