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Why Spain’s Service PMI Weakened in March 2018

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Spain’s services PMI in March 2018

According to Markit Economics, the final Spain services PMI showed a weaker rise in March as compared to February 2018. It stood at 56.2 in March as compared to 57.3 in February 2018. The PMI figure met the preliminary market estimate of 56. It was the weakest expansion in service activity since January 2018.

Spain’s services PMI in March was affected by the following factors:

  • Production volume and output improved at a slower rate in March as compared to February 2018.
  • New business orders and export orders also rose at a faster rate in March as compared to February 2018.
  • The employment growth in the service sector was the highest in the last ten years.
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Performance of various ETFs in March

The iShares MSCI Spain Capped ETF (EWP), which tracks Spain’s equity market performance, fell 1% in March 2018. Similarly, the iShares Europe ETF (IEV), which tracks Europe’s (VGK) performance, dropped 0.3% in the month.

Spain manufacturing PMI also showed a weaker rise in March 2018. Both manufacturing and service activity witnessed a softer rise in March and was mainly due to the softer client demand. The business activity also weakened in March 2018.

In the next part of this series, we’ll analyze the services PMI for the Eurozone in March 2018.

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