Latest data released by Markit - 5 October 2020
- Prior 47.7
- Composite PMI 44.3 vs 47.7 expected
- Prior 48.4
Spanish services activity sinks deeper into contraction territory last month, as the resurgence in virus cases led to some additional business and travel restrictions. That is weighing on economic activity as a whole and poses fresh question marks on the recovery.
Markit notes that:
"September's services data highlights how the recovery from the most severe impacts of COVID-19 earlier in the year is faltering. With infection numbers rising, demand is again turning downwards, both from domestic and international clients, and weighing heavily on those services industries that are so crucial to Spain's economy.
"Whilst a considerable technical rebound in third quarter GDP is priced in given the sheer magnitude of the drop in the second quarter, the PMI data showcase that the recovery is unlikely to be sustained at anywhere near strong enough rates to help close the considerable output gap that opened up in the first half of the year."Indeed, with job losses mounting, margins under pressure and the potential for greater restrictions to prevent the further spread of COVID-19, the risks of the so-called double dip are mounting."
