MADRID (Reuters) – Spain’s service sector experienced a robust acceleration in growth in February, driven by strong increases in business activity and new orders, S&P Global reported on Wednesday.
The HCOB Spain Services PMI business activity index rose to 56.2 in February from 54.9 in January, indicating a stronger rate of expansion. Any reading above 50 indicates growth in activity.
The sector’s expansion has been continuous since September 2023, with firms reporting improved market demand domestically and abroad. New export business increased for the third consecutive month, outpacing January’s growth.
Employment in the service sector continued to rise, extending a growth trend since October 2022, although the rate of job creation eased slightly from January’s 24-year high.
Despite the positive outlook, sentiment softened to a three-month low, with firms remaining optimistic about future growth due to anticipated improvements in the economic environment and planned commercial campaigns.
Cost pressures intensified, and firms responded by raising output charges.
“The Spanish private sector continues its strong economic path,” said Jonas Feldhusen, economist at Hamburg Commercial Bank.
“The services sector is acting as the driving force, while the PMI for the manufacturing sector showed a contraction for the first time in over a year.”
The HCOB Spain Composite PMI Output Index, which includes both services and manufacturing, rose to 55.1 in February from 54.0 in January, highlighting the services sector’s role in the private sector’s growth.
(Reporting by Reuters; Editing by Hugh Lawson)
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