Europe

Spanish Service Sector Contracts Least In Eight Months

The Spanish service sector contracted at the slowest pace in eight months in March, data from a survey by Markit Economics showed Wednesday.

The seasonally adjusted purchasing managers' index (PMI) for the service sector rose to 46.3 in March from 41.9 in February. A PMI reading below 50 indicates contraction in the sector, while one above suggests growth.

The sector contracted for the ninth month in a row, reflecting mainly the the economic crisis in Spain. The latest rate of fall was the weakest since June 2011.

New orders decreased for the ninth successive month in March, and the rate of decline was sharp. Backlogs of work decreased further during the month, though at the slowest pace since August 2011. Employment in the sector declined at a considerable, and accelerated pace in March, extending the current sequence of decrease to 49 months.

Input costs faced by Spanish service provides increased for the first time in three months, mainly due to higher fuel costs. However, firms lowered their output prices again amid strong competitive pressures and promotional offers.

by RTT Staff Writer