- Prior 54.9
- Composite PMI 53.2
- Prior 55.2
That's the weakest reading since January as services activity in Spain slows further in November. That said, demand conditions are still holding up and HCOB notes that severe floods in some areas of the country have had an impact on overall activity. From their notes:
"The Spanish private sector economy experienced a slight deceleration in November. Both services and manufacturing expanded, albeit at slower rates. In the service sector, activity growth decelerated somewhat, attributed to the adverse effects of flooding in the Valencia region. Gains in real wages and sustained employment growth may explain why underlying demand remains positive. However, caution is warranted as domestic new business lost momentum and international business even declined, reflecting the economic weakness of European counterparts.
"The Spanish service sector is busy hiring. This is unsurprising, given that business continues to thrive, and backlogs are increasing. Consequently, service providers remain highly optimistic about business expansion in the coming year. The future outlook index remains comfortably elevated.
"There are no significant developments on the price front. Input prices continue to rise, while output prices are slowing towards stagnation. The underlying reasons remain consistent with previous months. Wage increases are principally driving up input costs according to surveyed companies, but general disinflation in prices charged persists as companies are unable to fully pass on these costs to consumers due to competitive pressures."
