Spanish services expand in April for the first time since July
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Activity in Spain’s service sector expanded in April for the first time since July as businesses anticipated the easing of COVID-19 restrictions, a survey showed on Wednesday.
IHS Markit’s Purchasing Managers’ Index (PMI) of services companies, which account for around half the country’s economic output, rose to 54.6 last month from 48.1 in March.
It was the first time since July it had surpassed the 50 mark separating growth from contraction and the fastest expansion since late 2019.
Since the first coronavirus restrictions were imposed in March 2020, the indicator has been below 50 every month but June and July, when Spain emerged from its first lockdown.
“Higher activity was linked to a combination of firmer demand, the reopening of business premises, and rising prospects amid a generally improving situation related to COVID-19,” IHS Markit said in a statement.
A sister survey of manufacturers on Monday showed the fastest rate of expansion this century at 57.7, up from 56.9 in March.
The April data bode well for the second quarter after gross domestic product contracted 0.5% in the first three months of the year.
Spain’s economy contracted 11% in 2020, its worst full year on record. The services PMI dived to a record-low 7.1 in April 2020 when all non-essential economic activity was halted to curb the pandemic.
