Orders in services sector post sharpest fall on record

4 April 2008

SPAIN – Orders in the services sector in Spain dropped for the fifth month in a row to their lowest levels since 1999. Consultant NTC Economics said on Thursday that its purchasing managers index (PMI) dropped to 40.9 points from 46.1 points in February. A PMI above 50 indicates expansion while a figure below that level means contraction.

The fall was the sharpest ever in the nine years NTC has been calculating the index. Those surveyed attributed the decline to the slowdown in the construction sector.

The PMI for the Spanish manufacturing sector fell to 46.4 points in March, the lowest level since December 2001.

NTC said the significant drop in the services sector combined with the fall in
the manufacturers PMI pointed towards a deterioration in the overall economy.

[El Pais / Expatica]