Spain Services PMI2011-2020 Data | 2021-2022 Forecast | Calendar | Historical

The IHS Markit Spain Services PMI rose to 51.9 in July 2020 from 50.2 in the previous month but slightly below market expectations of 52. The reading pointed to the second consecutive expansion in the services sector and the sharpest since February, as businesses continued to restart operations following lockdowns due to the coronavirus pandemic. Output rose modestly while new orders fell back into contraction territory albeit marginally. Job losses were also recorded despite reports of some staff being brought back from furlough. On the price front, input cost inflation slowed while output charges continued to drop. Lastly, sentiment remained positive, still well below its historical trend with many firms signalling considerable uncertainties about the future and worries over a ‘second wave’ and its impact.

The IHS Markit Spain Services PMI rose to 50.2 in June 2020 from 27.9 in the previous month, easily beating market expectations of 45.9 and suggesting there was a stabilization in activity following the recent steep downturn caused by the coronavirus pandemic. New business volumes increased slightly, with several companies reporting that the virus continued to have an adverse impact on demand, while backlogs of unfinished work declined for a fourth successive month and staffing levels were also cut again. On the price front, input costs rebounded firmly in June, following two months of unprecedented declines. Output charges, however, continued to drop as the business environment remained extremely challenging and companies were offering lower charges to clients in a bid to maintain business and secure new work. Looking ahead, business confidence improved to the best since February.

The IHS Markit Spain Services PMI increased to 27.9 in May of 2020 from a record low of 7.1 in April and above market expectations of 25. Still, the reading pointed to a sharp decline in the services sector as activity, new business and employment continued to decline although at a slower pace. Whilst lockdown measures designed to stem the spread of COVID-19 were less restrictive compared to April - which led to the reopening of some business premises - underlying economic activity and demand for services remained extremely weak. Deflationary pressures persisted, with both input and output charges continuing to fall. Finally, business confidence improved noticeably in May following April’s record low, but remained in negative territory amid worries about the longer-term impact on consumption and broader economic activity from the COVID-19 pandemic.

The IHS Markit Spain Services PMI slid to 7.1 in April of 2020 from 23 in the previous month and worse than market expectations of 10. The reading pointed to a fresh record contraction in the services sector, as government restrictions on non-essential economic activities inevitably impacted heavily activity and demand. Record falls in output and new business were recorded, whilst the sharp reduction in workloads and heightened pessimism about the future led to widescale job losses. All of the sub-sectors that data are collected for recorded considerable drops in business activity when compared to March. Of note, however, Hotels & Restaurants and Transport & Storage were again especially hard hit, with these two subsectors suffering the sharpest contractions of all categories in April. Pessimism about the future sank to a new survey low, amid worries over the long-term impacts from the pandemic on demand, activity and the health of companies and consumers.