Spain: Services PMI falls in July
The HCOB Spain Services Purchasing Managers’ Index (PMI) fell to 53.9 in July from 56.8 in June. As a result, the index remained above the 50.0 no-change threshold but signaled a softer improvement in services-sector business activity compared to the previous month.
The slowdown in the Services PMI was primarily due to decelerations in activity and new business growth. Despite this, the sector continued to experience a high level of market demand, leading to increased backlogs of work, which prompted firms to hire additional staff for the 22nd consecutive month.
On the financial side, input cost inflation accelerated, mainly due to rising salary costs. However, the rate of charge inflation dropped to its lowest level since the previous September. Lastly, business confidence dipped to a six-month low, influenced by concerns over current activity levels.