HCOB Spain Services PMI: January 2024
Madrid, Spain – February 5, 2025 – The Spanish services sector expanded at a slower pace in January 2024, according to the latest IHS Markit/CIPS Spain Services Purchasing Managers’ Index (PMI). The PMI declined to 53.5 in January, down from 54.9 in December 2023. Nonetheless, the reading remained above the 50.0 threshold, indicating continued expansion in the sector.
Key Findings:
- New orders: Growth in new business slowed, with the New Orders Index falling to 53.1 from 55.3 in December.
- Business activity: Business activity expanded at a moderate pace, with the Business Activity Index slipping to 54.2 from 54.4 in the previous month.
- Employment: Job creation remained strong, with the Employment Index rising to 55.0 from 54.8.
- Input costs: Input costs continued to rise at a rapid pace, with the Input Prices Index climbing to 70.4 from 69.9.
- Output prices: Service providers increased their prices at a slower pace, with the Output Prices Index falling to 54.3 from 55.2.
Comments from IHS Markit:
“The latest PMI data for Spain’s services sector indicate a continued, albeit slower, expansion,” said Paul Smith, Economics Director at IHS Markit. “Demand for services softened in January, but businesses reported resilience in the face of ongoing inflationary pressures. While job creation remains robust, concerns about rising costs are weighing on the sector’s outlook.”
Outlook:
The overall Services Business Expectations Index for the year ahead declined to 60.1 from 61.2 in December, indicating a less optimistic outlook among businesses in the sector.
Conclusion:
The Spanish services sector continued to expand in January 2024, but at a slower pace than in recent months. New business growth slowed, input costs remained elevated, and output price inflation moderated. While employment remained strong, concerns about rising costs and weaker demand may impact the sector’s growth prospects in the coming months.
HCOB Spain Services PMI. January 2024
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