- Prior 53.2
- Composite PMI 53.8
- Prior 53.7
The services sector continues to carry the Spanish economy, with overall activity supported by a sharp rise in new business volume. Positive demand conditions are cited and that's most welcome in keeping the growth levels for the services sector. The only downside is that firmer price pressures were observed, as , input cost inflation remained sharp and historically elevated. Meanwhile, service providers in turn also moved to raise their own selling prices. HCOB notes that:
“The Spanish economy is skilfully navigating global challenges, staying on a growth trajectory. Compared to the previous month, Spain’s private sector slightly accelerated its pace of growth, indicated by the HCOB Composite PMI posting at 53.8 in September after 53.7 in August. Sector-wise, growth momentum in manufacturing softened somewhat, whereas the service sector gained momentum.
“In September, the service sector sailed ahead with confidence, buoyed by robust demand and a surge in new business. Companies reported smooth progress in attracting fresh clients, keeping the momentum firmly on course. The only cloud on the horizon remains a softer dynamic in foreign export business, largely due to a slowdown in tourism, as anecdotal evidence shows. This appears to be linked to the broader European environment, with political deadlock in France likely dampening consumer sentiment there, a trend that may be spilling over to its southwestern neighbour.
“Looking to the horizon, Spanish service providers remain upbeat about the months ahead. Many survey participants anticipate a pickup in activity, attributing their confidence to encouraging demand forecasts, strategic business expansions, and the rollout of new service offerings. This forward-looking sentiment is mirrored in the labour market, where hiring intentions remain solid. Additionally, a rise in backlogged work suggests that capacity is being stretched – potentially fuelling further demand for staff as firms strive to keep pace, but also a factor contributing to persistently elevated cost pressures as firms navigate the challenge of scaling up.”
