Spain April services PMI 53.4 vs 54.0 expected

• Prior 54.7
• Composite PMI 52.5
• Prior 54.0

That’s a slightly softer reading than estimated, with softer gains in new work recorded on the month. Meanwhile, confidence in the outlook has also fallen to its lowest since November. HCOB notes that:

“In April, business activity growth in Spain’s private sector slightly slowed according to the HCOB Composite PMI. While
growth in the services sector weakened, production in the manufacturing sector declined. This trend is also reflected in the
order situation: service providers recorded slower order growth, while orders in the manufacturing sector decreased.

“Service providers report a more challenging work environment. This is not surprising, given the increasing tensions in
international markets – keywords: trade frictions – which led to postponed or cancelled consumption and investment
decisions. Despite the slight slowdown, business activity and order levels remain in the growth zone.

“Operating costs for Spanish service providers remain high, despite the current slight slowdown. Anecdotal evidence
suggests that trade tariffs have already had initial impacts on supply chains, leading to input price increases. Additionally,
wage increases continue to be a significant driver of prices. As a result of rising input costs, companies are passing these
costs on to their customers.

“Spanish service providers remain optimistic about the future, even though the corresponding index recorded a decline this
month, falling to the lowest level of the year. This is mainly due to the uncertainty arising from US tariffs and their effects on
the international trade network. However, this has no immediate impact on Spanish workers. Given the continued growth in
orders and increasing backlogs, service providers added to their workforces.”

This article was written by Justin Low at www.forexlive.com.