Spain November services PMI 51.0 vs 51.5 expected

<ul><li>Prior 51.1</li></ul><p>Overall activity rises in Spain's services sector, albeit marginally. However, the more important detail is that price pressures are seen ticking higher as output charge inflation rises to a five-month high. Considering what markets are pricing in for the ECB, this particular point in the report might be well worth noting. HCOB says that:</p><p>“Resilience remains the name of the game in the Spanish services sector. After a soft patch during late summer, service
providers have recovered modestly. This provides stability to the whole economy which is about to outperform the big three
eurozone economies this year and probably next year, too. This stability also benefits the labour market for service jobs as
companies continue to hire people at a solid pace.
</p><p>“The stage seems set for a decent growth performance, yet beneath the surface, there are signs of fragility. New business,
in particular, has been stuck in a state of stagnation for four months running, while new export business continuously
decreased over the same period. Having said this, confidence in the outlook improved somewhat, even though it remains
well below its long-term average. Overall, our base case scenario remains one of modest growth for this part of the economy
over the coming months.
</p><p>“The service sector showed some strength through the ability of companies to pass through higher costs to their customers.
Input prices inflation eased a bit but was again at an historical high level and output prices were even increased at a faster
pace than the month before. Apart from a general rise in supplier prices and more expensive refinancing conditions, higher
wages were an important factor that pushed up operating expenses, according to panellists. This points to continued upward
pressure on inflation over the coming months.”</p>

This article was written by Justin Low at www.forexlive.com.