Investing.com - Service sector activity in Spain expanded at the fastest pace since June 2010 in November, fuelling optimism over the economic outlook of the euro zone’s fourth-largest economy, data showed on Wednesday.
In a report, market research group Markit said that its Spanish services purchasing managers’ index rose to a seasonally adjusted 51.5 in November from a reading of 49.6 in October.
Analysts had expected the index to hold steady at 49.6 last month.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
New orders grew at a solid pace during November, with the rate of expansion quickening to the sharpest since July 2007.
Commenting on the report, Andrew Harker, Senior Economist at Markit said, “The Spanish service sector enters the Christmas period on a relatively positive note, especially given the strength of the rise in new business seen in November.”
He added, “However, we have seen before how quickly signs of optimism can be dashed and the possibility remains of a further downturn should the current tentative domestic economic recovery run out of steam.”
Following the release of the data, the euro was modestly lower against the U.S. dollar, with EUR/USD easing down 0.06% to trade at 1.3581.
Meanwhile, European stock markets were higher after the open. Spain’s IBEX 35 rose 0.2%, the EURO STOXX 50 added 0.05%, France’s CAC 40 inched up 0.35%, London’s FTSE 100 was flat, while Germany's DAX edged up 0.2%.
In a report, market research group Markit said that its Spanish services purchasing managers’ index rose to a seasonally adjusted 51.5 in November from a reading of 49.6 in October.
Analysts had expected the index to hold steady at 49.6 last month.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
New orders grew at a solid pace during November, with the rate of expansion quickening to the sharpest since July 2007.
Commenting on the report, Andrew Harker, Senior Economist at Markit said, “The Spanish service sector enters the Christmas period on a relatively positive note, especially given the strength of the rise in new business seen in November.”
He added, “However, we have seen before how quickly signs of optimism can be dashed and the possibility remains of a further downturn should the current tentative domestic economic recovery run out of steam.”
Following the release of the data, the euro was modestly lower against the U.S. dollar, with EUR/USD easing down 0.06% to trade at 1.3581.
Meanwhile, European stock markets were higher after the open. Spain’s IBEX 35 rose 0.2%, the EURO STOXX 50 added 0.05%, France’s CAC 40 inched up 0.35%, London’s FTSE 100 was flat, while Germany's DAX edged up 0.2%.