Spain Services Activity Decline Slows In January

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Markit Economics reported on Wednesday that the Spain services purchasing managers' index stood at a seasonally adjusted 48.8 in January, sharply higher than the 45.0 score in December. A reading above 50 indicates expansion, while one below suggests contraction.

Although activity has continued to fall, this marks the slowest rate of contraction in the current 25 month sequence of decline.

Levels of new business received by Spanish service providers fell only slightly as increased marketing efforts helped draw new customers. Despite this, employment levels in the services sector were reduced again and at a considerable pace, extending the current period of job cuts to 23 months.

Input costs faced by service providers fell marginally, while output charges were slashed sharply, accelerating to its fastest pace since June 2009. Panelists cited intense competitive pressures as the major contributory factor for pulling back charges.

Markit Economics reported on Wednesday that the Spain services purchasing managers' index stood at a seasonally adjusted 48.8 in January, sharply higher than the 45.0 score in December. A reading above 50 indicates expansion, while one below suggests contraction. (Market News Provided by RTTNews)