Spain services PMI in April falls to lowest level since September

MADRID: Spain's service sector, worth around half of economic output, slowed in April to grow at its lowest pace since September, a survey showed on Monday, as political uncertainty amid national elections weighed on confidence.

Markit's Purchasing Managers' Index (PMI) of service companies stood at 53.1 in April, down from 56.8 in March. The sector has held above the 50 line separating growth from contraction for every month since October 2013.

"Spain's service sector stuttered at the start of the second quarter, with the rate of activity expansion falling on the back of heightened political uncertainties ahead of the elections at the end of April," said Paul Smith, economics director at IHS Markit.

"Moreover, confidence regarding the future also deteriorated, reaching its lowest level in over five-and-a-half years."

Spain held its most fragmented national election in decades on April 28, with five parties vying for power and none likely to win a large enough majority to rule without concessions to other political forces.

Business confidence, according to the Markit index, fell to 62.7 in April, its lowest level since August 2013 and compared to 67.9 in March.