Spanish Property Crisis Hits Consumer Confidence.
The Spanish Government hopes that Spain’s service industry would take up the economic slack caused by the collapse of the Spanish property market seem to be in vain. A March survey, The Purchasing Managers Index (PMI) carried out by NTC Economics (http://www.ntceconomics.com/) showed an index of 40.9, which is way below the 50 mark which separates growth from contraction. This is the lowest figure in the index’s nine year history covering the European economies.
The Spanish property market downturn is rapidly spilling over into other economic sectors. Consumer confidence in March fell from 73.1 from 76.8 in February (100 is the dividing line between pessimism and optimism) and this lack of confidence will soon affect Spain’s manufacturers.
