Latest data released by Markit - 6 May 2020

  • Prior 23.0
  • Composite PMI 9.2 vs 10.5 expected
  • Prior 26.7

Single-digit PMI prints for Spain last month as the economy pretty much implodes on the back of the virus fallout and business shutdowns in the country/region. Output and demand saw rapid deterioration with deflationary pressures also starting to creep in.

The survey period was between 7-27 April. Markit notes that:

"Given the restrictions on economic activity currently in place across Spain, April's devastating PMI data may well not come as a surprise to many commentators.

"Nonetheless, observing the sheer scale of the drop in many survey indicators lays bare the impact that the pandemic is having on Spain's economy. Allowing for a likely shift in the traditionally strong linear relationship between GDP and PMI data, we estimate the economy is currently contracting at a quarterly rate of around 7%.

"Whilst startling enough, this figure may well prove to be conservative, with the depth of the downturn undoubtedly greater than anything we have ever seen before. Indeed, based on March and April data alone, the pandemic is already close to surpassing the net effect on GDP seen during the global financial crisis and difficult years that followed.

"This time is of course somewhat different with recovery in theory set to be much quicker. However, job losses and great pessimism amongst firms about the future leads to notable concerns over the strength of any rebound."