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Spain stands out with improved services PMI

Markit released purchasing managers’ indices for the month of May. The Spanish figure made a nice rise from 44.4 to 47.3 points, defying expectations of a more moderate rise to 45.3 points.

No, this is still under the 50 line that separates contraction from growth, but nevertheless, there are a few reasons to be optimistic:

  1. Other euro-zone services PMIs didn’t jump: Italy disappointed with a slide from 47 to 46.5, lower than 47.5 expected. Germany and France saw a release of final data, that didn’t shine, and the final PMI for the whole euro-zone was actually revised to the downside: from 47.5 to 47.2 points. Spain’s Services PMI is now marginally above the euro-zone average.
  2. More improvement: This figure joins a better than expected number in the manufacturing PMI. Also here, contraction is slower.
  3. Job figures, even if part of a “summer effect”, are still relatively good: a non-seasonally adjusted drop of 98.3K or nearly 2% in the number of unemployed people.

Spain is the euro-zone’s fourth largest economy and was often in the limelight of the debt crisis, making data from the country increasingly important.

Further reading:  Shadow of Spain and Italy looms over the Euro zone

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.