MADRID, 3 Feb. (EUROPA PRESS) -

The activity of Spanish companies returned to positive territory last January, after four consecutive months of contraction, according to the Purchasing Managers Composite Index (PMI), which rose to 51.6 points from 49.9 in December 2022, reported S

"This rebound was the first in five months and the most pronounced since July of last year," said those responsible for the PMI survey.

The improvement in the activity of the private sector in Spain is mainly due to the impulse of the services sector, whose PMI rose to 52.7 points from the 51.6 of the previous month, while the manufacturing sector continued to contract, although to a lesser extent, with a reading of 48.4 points, compared to 46.4 in December.

In the case of the services sector, the increase in activity levels responded to the better evolution of sales at the start of 2023, with a solid increase in new orders received, including a strengthening of foreign demand, which increased by First time in seven months.

The increase in new orders once again put the capacity of companies under pressure, which accumulated orders to be completed and increased their workforces for the fourth consecutive month.

"Businesses are hopeful that conditions will continue to improve over the next 12 months and have increased their workforce as a result for the fourth month in a row," said Laura Denman, economist at S

However, the expert warned that, despite strengthening to its eight-month high, confidence remained below its historical average and respondents expressed concern about inflationary pressures.