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Markit Economics reported on Wednesday that the Spain Services Purchasing Managers' Index stood at a seasonally adjusted 45 in December, down from 46.1 in November. A reading above 50 indicates expansion, while one below 50 suggests contraction. Spanish services sector activity has now been in decline for two years.
Levels of new business received by Spanish service providers fell at a slightly slower pace during December, although the rate of contraction was still marked. Employment levels in the services sector were reduced again and at a considerable pace in line with falling workloads.
Input costs faced by service providers increased for the fifth month running in December, while output charges were slashed sharply. Panelists cited contracting demand and competitive pressures as contributory factors for pulling back charges.
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