FX.co ★ Spain Services Sector Growth Slowest Since 2023

The HCOB Spain Services PMI declined to 51.3 in May 2025 from 53.4 in April, falling short of market expectations of 52.9. Although this marks the twenty-first consecutive month of growth in the sector, it reflects the slowest expansion rate since November 2023. The rise in new business has slowed, hitting an eighteen-month low, primarily due to ongoing uncertainty that has dampened demand, especially from international clients. Nevertheless, employment figures rose, which allowed service providers to gradually reduce the backlog of work. On the pricing front, input costs continued to climb at a rate above average, driven by increased wages and supplier charges. Conversely, output prices decreased to a six-month low due to mounting competitive pressures. Finally, sentiment about future activity reached its lowest point since November 2023, as firms voiced increasing concern over the increasingly challenging economic landscape.