Spain services growth slows in June (but so does unemployment)

 

Spain's service sector, worth around half its total economic output, continued to expand in June and job creation grew at the fastest rate in almost eight years, according to a survey published on Friday.

Markit's Purchasing Managers' Index (PMI) of service companies stood at 56.1 in June, down from 58.4 in May. That marked the 20th straight month the index was above the 50 line separating growth from contraction.

"The June services PMI survey rounds off an encouraging second quarter of the year for Spanish service providers, with strong rises in activity and new business recorded throughout," said Andrew Harker, a Markit economist. "The latest survey also continued the recent trend of quickening employment growth."

Spanish unemployment is one of the highest in the euro zone after Greece, with one in four workers unable to find a job. But an economic recovery since 2013 is slowly producing employment, especially in services.

The Markit employment index rose to 54.7 in June from 54.5 in May, according to the survey.

The number of Spaniards registered as jobless fell for the fifth straight month in June, according to data released on Thursday, as the start of the tourist season boosted employment.

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