Spain Service Sector Growth Accelerates to Over 3-Year High

2026-08-05 07:23 By Agna Gabriel 1 min. read

The S&P Global Services PMI rose to 58.3 in July 2026 from 54.2 in June, its highest level since March 2023 and well above market expectations of 54.9.

Business activity expanded at one of the fastest rates in nearly five years, supported by the strongest increase in new orders since January 2025, largely driven by robust domestic demand and successful product launches and commercial initiatives.

Firms responded by accelerating hiring, with employment growth reaching its highest level since January, although workloads continued to outpace capacity, resulting in a further increase in backlogs.

On the cost side, input price inflation eased to its lowest level since February despite continued increases in energy, fuel, and labour costs.

At the same time, competitive pressures limited firms’ pricing power, with output price inflation slowing to its weakest pace since early 2021.

Although business confidence remained positive, sentiment softened amid lingering political uncertainty.



News Stream
Spain Service Sector Growth Accelerates to Over 3-Year High
The S&P Global Services PMI rose to 58.3 in July 2026 from 54.2 in June, its highest level since March 2023 and well above market expectations of 54.9. Business activity expanded at one of the fastest rates in nearly five years, supported by the strongest increase in new orders since January 2025, largely driven by robust domestic demand and successful product launches and commercial initiatives. Firms responded by accelerating hiring, with employment growth reaching its highest level since January, although workloads continued to outpace capacity, resulting in a further increase in backlogs. On the cost side, input price inflation eased to its lowest level since February despite continued increases in energy, fuel, and labour costs. At the same time, competitive pressures limited firms’ pricing power, with output price inflation slowing to its weakest pace since early 2021. Although business confidence remained positive, sentiment softened amid lingering political uncertainty.
2026-08-05
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.
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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