Spanish services growth cools, still above trend, PMI shows

Spain Services PMI: Expansion Slows in October but Stays Above Trend

Spain's Services Sector Performance in October

Growth Trends and PMI Index

Nov 4 (Reuters) - Spain's services sector saw strong growth in October, though the expansion was slower than in each of the previous three months as new business growth cooled and export sales fell, a business survey showed on Wednesday.

• The S&P Global Spain Services PMI Business Activity Index fell to 57.2 in October from 58.3 in September. The 50 mark separates growth from contraction

Expert Commentary

• "Spain's services economy continued to expand at an above-average rate during October and was therefore indicative of a positive start to the final quarter of the year in terms of economic growth," said Paul Smith, economics director at S&P Global Market Intelligence

Business Confidence and Outlook

Factors Driving Confidence

• Business confidence strengthened to its highest level since February, with firms citing previous investment plans and hopes that the upcoming general election on November 29 may bring positive change

Business Activity and Employment

New Business and Export Trends

• New business volumes increased again but growth eased to a five-month low. New export business contracted for a second straight month

Employment Growth

• Employment rose again, extending a run of job creation to more than four years. The pace of hiring was the strongest since July

Inflation and Price Trends

Input and Output Prices

• Input price inflation accelerated to its highest level since March, as companies reported higher energy, fuel and transport expenses. Output price inflation, however, eased from September's five-month high

Manufacturing Sector Comparison

Sister Manufacturing Sector Index

• The sister manufacturing sector index, released on Monday, expanded in October at its fastest pace since August 2025

Reporting and Editing

(Reporting by Reuters; Editing by Joe Bavier)