MADRID, Oct. 5 (EUROPA PRESS) –
In September, the activity of the private sector in Spain suffered its first contraction since last January as a result of the impact of inflation and uncertainty, as reflected in the Composite Purchasing Managers’ Index (PMI), which fell to 48.4 points from 50.5 in August, its worst reading since January 2022.
The fall in the activity of Spanish companies reflects the contraction both in the manufacturing sector, where the PMI fell in September to 49 points from 49.9 the previous month, as well as in the services sector, whose index fell 50 points per first time since January, with a reading of 48.5 integers, compared to 50.6 in August.
The lack of new orders received was the main reason for
the contraction of the Spanish private sector in September, which translated into a sharp reduction in backlogs in companies and slight job cuts, while confidence in the future remained historically subdued.
Likewise, cost inflation remained the main concern for companies in Spain, as prices in September increased at the steepest rate in three months,
due to rising energy bills and
public services, while the inflation of prices charged also picked up from August.
In the case of the services sector, activity contracted in
September for the first time since the beginning of the year in the middle
of a drop in sales, which led companies in the sector to complete pending orders.
Partly in response to this decrease in backlogs, job losses were recorded in the sector, but these were also due to lower confidence in the future.
“September was a difficult month for companies in the Spanish service sector,” said Paul Smith, an economist at S&P Global Market Intelligence, for whom high inflation continues to affect market demand and client budgets, while uncertainty about the future is also having an impact on sales and demand.
Likewise, the expert indicated that companies are
reluctant to hire more staff at a time of uncertainty and with cost pressures mounting, “confidence about future growth remains subdued at best.”
Source: Europa Press
