Eurozone PMI climbs to 11-month highs, led by Spain

MADRID, 6 May. (EUROPA PRESS) -

The activity of the private sector of the euro zone accelerated its pace of expansion during the month of April, when the composite PMI index stood at 51.7 points from 50.3 the previous month, which represents the highest reading of the data in eleven months, with Spain in the lead, according to S

Specifically, activity in the eurozone services sector accelerated in April to 53.3 points from 51.5 the previous month, its best result in eleven months, while the manufacturing PMI fell to 45.7 points, compared to at 46.1 in March, its worst reading in four months.

Among the countries analyzed, the highest readings of the composite PMI corresponded to Spain, with 55.7 points, its highest in 12 months; Italy, with 52.6, its lowest in 2 months; ahead of Germany 50.6, its highest in 10 months; and from France, with 50.5 points, its highest in 11 months; as well as Ireland, with 50.4 points, its lowest in 6 months.

In April, the five euro zone countries for which data is available recorded an increase in business activity levels at the beginning of the second quarter, highlighting that Spain was the economy with the best result, and its growth accelerated to reach its peak. maximum in one year.

"Spain is outperforming Germany, Italy and France, and its respective services PMI index remains several points ahead of its counterpart economies," stressed Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, for whom, despite political turbulence, "Spain seems to be disproportionately capitalizing on tourism.

"In fact, according to the IMF, the Spanish Government is less focused on austerity measures compared to other major economies in the euro zone, which means less slowdown in the economy," says De la Rubia.

The growth of activity in the Spanish services sector reached its highest reading in April since May of last year, according to the PMI index, which rose to 56.2 points from 56.1 the previous month.

The improvement in the services sector PMI pushed the composite PMI data to one-year highs, with a reading in April of 55.7 points from 55.3 in March, after the manufacturing PMI rose in the fourth month of the year to 52.2 from 51.4 points.

Companies in the services sector attributed the increase in activity to an improvement in new order volumes, which increased for the fifth consecutive month, although the pace of growth slowed compared to March and reached a three-month low reflecting the underlying weakness of external demand.

Thus, companies observed some pressure on capacity in April, and pending orders increased for the fourth consecutive month, which encouraged the hiring of additional workers, increasing employment in the sector for the 19th consecutive month.

On the price front, paid price inflation fell in April to its lowest level in nine months, although costs continued to rise at a historically high rate, which companies attributed to rising wages. As such, fees charged continued to increase in April at a high rate.

"Spanish service companies continually impress with their results," said Jonas Feldhusen, economist at Hamburg Commercial Bank.