Spanish services sector growth slows to a crawl in August – PMI

MADRID (Reuters) – Exercise in Spain’s providers sector expanded in August on the slowest charge since January, with corporations involved that inflation will weigh on their earnings and on clients’ demand, a survey confirmed on Monday.

S&P International’s Buying Managers’ Index (PMI) of providers corporations, which account for round half of Spain’s financial output, fell to 50.6 final month from 53.8 in July, near the 50.0 mark that dividing development from contraction.

It was the bottom studying since January, when exercise contracted with a studying of 46.6.

“Spain’s economic system headed in the direction of stagnation throughout August because the service sector adopted manufacturing by posting solely marginal development. Excessive inflation and common market instability once more dominated firm stories on their present scenario,” wrote S&P International Economics Director Paul Smith.

Service sector firm managers are involved excessive inflation will harm demand from their clients, and the economic system could also be heading right into a “difficult winter and attainable recession”, he added.

Spanish shopper worth inflation slowed to 10.4% year-on-year in August from 10.8% in July – charges not seen because the Nineteen Eighties.

A sister survey final Thursday confirmed Spanish manufacturing facility exercise contracted barely in August as inflationary pressures and macroeconomic uncertainty weighed on demand.

(Reporting by Inti Landauro; Enhancing by Hugh Lawson)