Spanish service sector returns to growth in May
The S&P Global Spain services PMI rose to 50.1 in May from 47.9 in April as activity and sales returned to growth. While employment increased for the 44th straight month, firms warned that underlying performance remains weak due to geopolitical uncertainty and high energy costs.
Spain service sector activity stabilized in May as the S&P Global PMI rose to 50.1 from 47.9 in April. The index moved back above the 50.0 threshold that separates growth from contraction after a single month of decline. The recovery suggests the current economic downturn may be shallower than previously feared by market participants.
### Demand Stability Offers Growth Hope New business returned to growth during the month, ending the contraction seen in April. Paul Smith, economics director at S&P Global Market Intelligence, said the stabilization in demand and activity provides hope for a relatively shallow downturn. However, Smith warned that underlying performance remains weak, with the private service sector facing its worst quarter in over five years.
