The IHS Markit Spain Services PMI jumped to 54.9 in December of 2019 from 53.2 in November, beating market expectations of 53.9. The reading pointed to the strongest growth in services activity in nine months, mainly due to new business. However, export sales fell for the eighth month as political and economic uncertainties continued to weigh on demand in external markets. Also, employment increased and backlogs of work went up the most since August of 2018. On the price front, operating expenses rose due to higher salaries and fuel and utility bills while output charges were nearly unchanged. Business confidence improved to a 5-month high, boosted by plans to bolster commercial and strategic activities, plus some encouragement from higher demand over the past two months. However, worries over domestic politics were widely reported by the survey panel, and are expected to weigh on investment and economic activity in the coming months. Services PMI in Spain averaged 52.35 points from 2011 until 2019, reaching an all time high of 60.30 points in April of 2015 and a record low of 36.80 points in November of 2011. source: Markit Economics
Services PMI in Spain is expected to be 52.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services PMI in Spain to stand at 52.90 in 12 months time. In the long-term, the Spain Services PMI is projected to trend around 54.40 points in 2020, according to our econometric models.