Spain Services Sector Growth Picks Up to 6-Month High

2026-07-03 07:24 By Agna Gabriel 1 min. read

The S&P Global Spain Services PMI accelerated to 54.2 in June 2026, well above expectations of 50.9 and rebounding from May's 50.1 to post its strongest growth rate of the year.

This expansion was driven by a robust influx of domestic new orders, which outstripped corporate capacities and caused a marked accumulation of backlogs.

Though export demand remained flat, it marked the first time in 2026 that international sales avoided a decline.

Buoyed by potential resolutions to the Middle East conflict, business sentiment surged to a four-month high, prompting firms to expand recruitment at the fastest pace in three months to extend a 45 month streak of job creation.

Rising headcounts elevated wage bills, which alongside high fuel costs, kept operational expenses substantial.

However, input price inflation slowed to a four-month low, allowing service providers to moderate their own rate hikes and cool output price inflation to its lowest level since January.



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Spain Services Sector Growth Picks Up to 6-Month High
The S&P Global Spain Services PMI accelerated to 54.2 in June 2026, well above expectations of 50.9 and rebounding from May's 50.1 to post its strongest growth rate of the year. This expansion was driven by a robust influx of domestic new orders, which outstripped corporate capacities and caused a marked accumulation of backlogs. Though export demand remained flat, it marked the first time in 2026 that international sales avoided a decline. Buoyed by potential resolutions to the Middle East conflict, business sentiment surged to a four-month high, prompting firms to expand recruitment at the fastest pace in three months to extend a 45 month streak of job creation. Rising headcounts elevated wage bills, which alongside high fuel costs, kept operational expenses substantial. However, input price inflation slowed to a four-month low, allowing service providers to moderate their own rate hikes and cool output price inflation to its lowest level since January.
2026-07-03
Spain Services Sector Stabilises in May
The S&P Global Spain Services PMI rose to 50.1 in May 2026 from 47.9 in April, above market expectations of 48 and signalling a stabilization in activity after the previous month’s contraction. The slight improvement was supported by a return to growth in new business, driven by stronger demand. However, growth remained modest as uncertainty linked to the Middle East conflict continued to weigh on market conditions and export orders declined for a fifth consecutive month. Input costs increased sharply, largely due to higher energy and fuel expenses, alongside rising supplier and labour costs. In response, service providers raised their selling prices, although output price inflation eased to a three-month low. Business confidence improved slightly but remained below historical norms due to ongoing geopolitical uncertainty. Despite this, firms expanded hiring, with employment growth strengthening through a mix of temporary and permanent recruitment.
2026-06-03
Spain Services Sector Falls Into Contraction Territory
The S&P Global Spain Services PMI fell to 47.9 in April from 53.3 in March, dropping below the 50 mark for the first time since August 2023 and reaching its lowest level since early 2022, missing market expectations of 52. The decline was driven by a similar fall in new orders, as firms cited weak demand and heightened uncertainty linked to the Middle East conflict. Clients showed reluctance to commit to new spending, with both domestic and export demand weakening, the latter seeing its sharpest drop since July 2022. Business confidence also deteriorated to its lowest since December 2022. Rising energy, fuel and wage costs continued to push operating expenses higher, prompting firms to raise prices. Employment still increased, though at a slower pace, while backlogs edged up slightly amid capacity pressures and supply constraints.
2026-05-06