Spain Services PMI Jumps to 40-Month High in July Amid Soaring Demand
Spain's Service Sector Sees Robust Expansion in July
PMI Data Highlights
Aug 5 (Reuters) - Spain's service sector expanded at its fastest pace since March 2023 in July as stronger demand drove a marked rise in new business, a business survey showed on Wednesday.
• The S&P Global Spain Services PMI Business Activity Index rose to 58.3 in July from 54.2 in June, a survey by S&P Global showed. The 50-mark separates growth from contraction.
Market Demand and New Business
• "Service sector growth took off during July as market demand strengthened and resulted in a sizeable increase in new business placed with companies," said Paul Smith, Economics Director at S&P Global Market Intelligence.
• New work rose at the strongest rate since January 2025, with firms citing stronger demand, new product launches and commercial activity.
Export Orders and Employment Trends
• Export orders increased modestly and at a much slower pace than total new business.
• Employment growth accelerated for a third straight month to its highest since January.
• Backlogs of work rose for a second consecutive month.
Costs, Output Charges, and Business Confidence
• Input cost inflation eased to a five-month low, though energy, fuel and staff costs continued to lift expenses.
• Output charges increased at the weakest rate since March 2021.
• Confidence remained positive but fell from June and stayed below trend amid uncertainty over domestic and international politics.
Composite PMI Performance
• The S&P Global Spain Composite PMI rose to 56.5 from 53.3, a 19-month high, as services offset a marginal fall in manufacturing output.
(Reporting by Reuters; Editing by Toby Chopra)
