The growth of the activity of Spanish companies accelerated during the past month of February, mainly due to the expansion of the services sector, as reflected by the Composite Purchasing Managers’ Index (PMI), which rose in the second month of 2023 to 55, 7 points from 51.6 in January, registering his best reading in a year, according to S

The activity data for the Spanish services sector for the month of February improved to 56.7 points, compared to 52.7 the previous month, its best reading since April 2022, while activity in the manufacturing sector grew again for the first time since June of last year, with a PMI reading of 50.7 from 48.4 in January.

Regarding demand, a notable rebound in new orders was observed in February, supported by the strongest increase in new orders in the service sector since November 2021, while for manufacturing companies they fell for the ninth consecutive month, albeit at a slower pace.

On the other hand, employment in the private sector in Spain grew again in February and orders pending completion increased at the fastest rate since May of last year.

Also, cost pressures remained significant for companies, as inflation rates for both buying and selling prices increased in February.

“The outlook revealed for the services sector in Spain improved remarkably in February,” said Laura Denman, economist at S

However, the expert warned that “it is difficult not to be cautious with respect to the duration of the current trajectory of the sector, since inflationary pressures remained high”, although, despite them, companies maintained a very optimistic perspective for commercial activity for the next twelve months.