Spain: the PMI of services is kept expanding but falls to 51.3 in May, its lowest level in 18 months

He HCOB Spanish Services PMI published by S&P Global has fallen 2.1 points in May to 51.3 From April 54.4, registering its lowest level in 18 months. The figure disappoints market expectations, as a more moderate decrease was expected to 52.9.

Although this reading was above the level of 50.0 (indicating expansion) for twentieth first consecutive month, it only showed a modest growth, which was the slowest reflected by the survey since November 2023.

According to the statement, The Spanish services sector continued to expand in May, but at a much slower pacesince the persistent uncertainty affected the growth of demand, especially in the case of international clients. The latest data showed the weakest increases in the activity and new orders of the last eighteen months, while confidence in future perspectives fell to their lowest level since November 2023. However, companies hired additional personnel, which allowed them to modestly reduce their pending orders.

With regard to prices, inflation of inputs costs remained high as the salary costs and suppliers prices continued to increase. Consequently, collected prices increased, although at the slowest rhythm of the last six months.

Euro reaction

The euro has risen after the data, also driven by the weakness of the dollar after the Donald Trump’s last publication in Truth Social complaining about the difficulty of reaching an agreement with his Chinese counterpart, Xi Jinping. He EUR/USD It quotes in these moments about 1,1390, winning 0.19% daily.