September 3, 2015

The Markit Purchasing Managers’ Index (PMI) Composite Output Index rose from 58.3 in July to 58.8 in August, thus hitting a four-month high. As a result, the index remains far above the 50-threshold that separates expansion from contraction in business conditions.



The Markit Spain Services PMI remained broadly stable in August, firmly entrenched in expansionary territory. New orders and business activity both expanded at robust rates in August, albeit slightly weaker than July’s result. The economy added jobs for the 11th consecutive month in August, however, the pace of creation was the weakest since April. Markit analysts added that, “we finally saw an easing off in the rate of job creation after it had accelerated in eight successive months, but the improvements in new work that have been recorded throughout the past couple of years are still translating into improvements in the labour market.”



The Markit Spain Manufacturing PMI fell slightly in August, edging down from July’s result on the back of the weakest growth in new orders since December 2013. In addition, employment increased at the slowest pace in six-months. However, output, a bright-spot in the survey, expanded at a three-month high while input costs were broadly unchanged.

The Central Bank expects the economy to grow 2.8% in 2015 and 2.7% in 2016. FocusEconomics Consensus Forecast panelists expect GDP to expand 2.3% in 2015, which is up 0.2 percentage points from last month’s forecast. In 2016, panelists also expect the economy to increase 2.3%.