- Prior 48.5
The reading is better-than-estimated but it still signals another contraction in Spanish services activity as demand conditions remained subdued. Price pressures were again elevated, with both input prices and output charges increasing sharply and at accelerated rates since the previous month. S&P Global notes that:
“Against a backdrop of elevated inflation and unusually high levels of uncertainty in the economic outlook, activity in the Spanish service sector understandably remained under downward pressure during October. New business was again down as clients continued to place on ice any previous plans to increase their own spending and investments.
“The net impact was falling levels of output and new business, heaping further stress on business operations at a time of rising costs and challenges in passing these on to clients at a time of falling market demand. Not surprisingly, companies subsequently remain hesitant when thinking about future activity, with confidence in the outlook again subdued heading towards year end.”