Activity in the Spanish service sector decreased for the thirteenth consecutive month in July as the ongoing economic crisis impacted business conditions negatively, data from a survey by Markit Economics showed Friday.
The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector came in at 43.7 in July, staying below the no-change 50 mark - which separates growth from contraction - for the thirteenth month in a row. The latest reading was slightly above June's reading of 43.4.
New orders received by Spanish service providers decreased at fastest pace since October 2011 as clients were hesitant to embark on new projects given deteriorating economic conditions. Firms reduced their workforces at a faster pace during the month. Employment has now fallen in each of the past 53 months.
Input prices increased marginally in July, following a slight fall in the previous month. Meanwhile, output prices decreased further as companies attempted to boost new business.
The survey showed that confidence among entrepreneurs in the service sector deteriorated to the lowest level in thirty-eight months.
by RTT Staff Writer
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