• Prior 59.8
  • Composite PMI 55.4
  • Prior 58.3

Omicron worries are to blame as activity and new business expanded at lower rates. Meanwhile, business confidence slumped to an 11-month low while price pressures continued to persist. Put together, that is a noticeable hit on sentiment and the services sector last month. Markit notes that:

“The Spanish service economy maintained its recent run of growth into year end, though the latest data and reports from panellists suggested that dark clouds were forming for the sector heading into the new year.

“Whilst growth remained marked, it was noticeably slower than in recent months. This was linked to the recent emergence of the Omicron variant of COVID19. Panellists indicated growing worries amongst the public, with many adopting a generally more cautious attitude that was reflected in growing numbers of booking cancellations.

“These were naturally seen most often amongst providers of hospitality services, which given the importance of the holiday period to these firms in terms of sales and revenues means that new developments in the virus could not have come at a worst time."