Spanish services PMI falls sharply in September
Upturn in Spanish economy may have peaked, Markit says
Improved expectations for economy buoy sentiment
Activity in Spain´s services sector slowed in September to its weakest in almost a year.
The country´s services sector purchasing managers´ index fell for a second consecutive month to reach a reading of 55.1, after a print of 59.6 in August (consensus: 58.5).
A gauge of new orders also eased sharply, to its lowest since November 2014.
Nonetheless, over half of all respondents were now forecasting activity to increase – after sentiment hit a two-year low in August - thanks to improved expectations for the economy.
Together with slowing growth in manufacturing, today´s services data suggests that the upturn in Spain may have peaked in the third quarter of the year, said Andrew Harker, senior economist at Markit.
“The rest of the year will be crucial in determining whether the Spanish economy continues to improve or eases back towards stagnation.”