uploads///image

Gradual Fall in Spain Services PMI Weakening Investor Sentiment

By

May. 15 2018, Published 11:32 a.m. ET

Spain Services PMI in April

According to a report by Markit Economics, the final Spain Services PMI (Purchasing Managers’ Index) showed a weaker rise in April than in March. It was 55.6 in April compared to 56.2 in March. The figure didn’t meet the preliminary market estimate of 56.1 and was the weakest expansion in services activity since December 2017.

Spain’s Services PMI in April was mostly due to the following:

  • Production volume and output improved at a weaker pace in April than in March.
  • New business orders and export orders all witnessed softer improvement in April compared to March.
  • Employment growth in the services sector was the lowest since February 2017.
Article continues below advertisement

Performances of various ETFs in April

The iShares MSCI Spain Capped ETF (EWP), which tracks Spain’s equity market performance, rose 2.3% in April. The iSharesEurope ETF (IEV), which tracks Europe’s (VGK) performance, rose 2%.

In addition to Spain, the overall Eurozone economy has been experiencing a gradual fall in economic activity since the start of 2018. Although many analysts believe the fall is temporary, it’s hard to predict whether the economy will recover at an accelerated rate in 2018. Improvement in economic activity in major nations such as Germany, France, and Spain could speed up the Eurozone’s economic activity overall.

In the next part of this series, we’ll analyze the Eurozone Services PMI for April.

Advertisement

More From Market Realist