Spain: Service sector expansion remains sluggish in February

Spain’s Services Sector Growth Slows in February

In February, Spain’s services industry continued to grow, though the pace of expansion eased due to weaker demand and less favorable market conditions. Hiring also increased, but at a slower rate, with some businesses choosing not to replace departing staff as confidence in future prospects dropped to its lowest point in half a year. Meanwhile, companies faced mounting cost pressures, with input prices rising at the fastest rate seen in the past twelve months. As a result, businesses responded by increasing their selling prices more quickly. The seasonally adjusted HCOB Spain Services PMI® Business Activity Index recorded a reading of 51.9 for February.