Spain January services PMI 52.7 vs 52.5 expected

• Prior 51.6

That's a solid start to the new year for Spanish services activity as new business improves and business sentiment also rising to an eight-month high. That said, inflation remains a problem with selling price inflation still among the sharpest on record in January. S&P Global notes that:

“Spain’s service sector started out 2023 on a relatively positive note, according to latest PMI data. Expansions in activity and new business were sustained in January and, in fact, sharpened to six- and seven-month highs, respectively. Reportedly, the main driver in each of these upturns was an improvement in the overall demand environment which is certainly a positive sign for the future. Firms were hopeful that conditions would continue to improve over the coming year and subsequently added to their workforce numbers for the fourth month in a row.

“That said, despite strengthening to an eight-month high, the overall degree of confidence remained below its historical average. Survey respondents largely mentioned that concerns surrounding current inflationary pressures weighed on the outlook. It seemed as so such anxieties were perhaps justified as selling price inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term accelerated in January. However, the pace of input price inflation did slow to a 15-month low so we can hope that output prices will eventually follow suit.”