- Prior 54.3
- Composite PMI 56.0
- Prior 53.8
Spain's services sector posts its fastest growth in 10 months amid a pick up in both activity and new business. Meanwhile, confidence in the outlook also strengthened- reaching a seven-month high. That said, input price inflation remained elevated despite dropping to a three-month low while selling prices were raised at a stronger degree than the month before. HCOB notes that:
"Spain’s private sector is entering the fourth quarter with noticeable momentum. The HCOB Composite PMI recorded a solid increase, reaching 56.0 points, which is the highest level so far this year. This improvement is driven by accelerated growth in both manufacturing and services. Following the robust GDP expansion in the third quarter, the October PMI figures fuel optimism that Spain’s GDP could grow by nearly 3.0 percent in 2025, thereby maintaining its exceptional position among the four major euro area economies.
"Business activity in Spain’s services sector picked up significantly in October. This development is underpinned by a solid inflow of new orders, which firms attribute directly to stronger market demand. Only foreign orders showed signs of weakening growth, reflecting the uncertain international business environment.
"Spanish service providers are expanding their workforce to keep pace with sustained business momentum. This is also evident in rising backlog of work, which has now increased for four consecutive months. Against this backdrop, firms remain confident about their business outlook for the coming year. Their optimism is reflected in ambitious growth plans, the expansion of commercial activities, and expectations of continued strong demand in 2026. "Price developments remain a point of concern. Both input and output price indices are significantly above the levels seen between 2009 and 2020. Panellists report rising personnel and energy costs, which have compelled many firms to adjust their prices accordingly."
