Spanish PMI Was Especially Dismal

Several people noticed last week that Spanish yields have jumped above their Italian counterparts for the first time in a while.

There have been several stories about Spanish slippage when it comes to deficit targets, and the frailties of their economy.

It’s interesting because actually people were worried about Spain long before they got worried about Italy, but then the market switched gears last summer, and Spain was put on the backburner. Well, not anymore.

And this news isn’t helping.

The country’s services PMI reading was dismal. Take a look.

This index fell from over 46 to 41.9 between January and February.

chart

Photo: Markit

Basically every sub-component is getting worse. The employment sub-index has now fallen four straight months for four years.

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