Spanish services outlook is the best since July 2011

The Spanish services sector is seeing its highest orders since July 2011, according to surveys by Markit (release).

In June the services purchasing manager's index rose from 47.3 to 47.8 (economists had forecast an improvement to just 47.5).

Andrew Harker, economist at Markit and author of the report said:

The latest PMI data for the Spanish service sector reinforce the impression that the severity of the current recession is easing. Combined with a similar trend in the manufacturing PMI data, we would expect to see a slower rate of contraction in Q2 GDP than the 0.5% decline seen in Q1. While this is promising, we are likely to still be some way from seeing an end to recession and return to sustainable growth.

On Monday, new data showed that the Spanish manufacturing sector saw an end to contraction, marking the first time in four years that the country's manufacturing sector is outgrowing Germany's.