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Spain services sector marks one full year of growth in October: PMI

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Spain's services sector marked its 12th consecutive month of growth in October, a survey showed on Wednesday, although it expanded at a similar pace as the previous month, suggesting the recovery may be topping out.

[MADRID] Spain's services sector marked its 12th consecutive month of growth in October, a survey showed on Wednesday, although it expanded at a similar pace as the previous month, suggesting the recovery may be topping out.

Markit's Purchasing Managers' Index (PMI) of service companies stood at 55.9 in October, just up from 55.8 in September and marking a full year above the 50 line separating growth from contraction.

"The twelfth successive rise in activity during October means that the Spanish service sector has been able to sustain growth for a year for the first time since 2007," Markit economist Andrew Harker said.

Growth in new business suggests the economic recovery is set to continue for now, he added. New business increased for the 15th month in a row.

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Employment in the service sector, which accounts for around half of Spanish economic output, also grew in October after shrinking a month earlier.

"The rate of job creation was weak but the return to hiring after employment stabilised in September provides some reassurance," Mr Harker said.

The number of people registered as unemployed in Spain fell at its fastest pace in 16 years for the month of October in seasonally adjusted terms, data showed on Tuesday, although the jobless rate remains very high at 23.7 per cent.

REUTERS

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