FX.co ★ Spain Services Growth Unexpectedly Accelerates

The S&P Global Spain Services PMI climbed to 53.3 in March 2026, up from 51.9 in February and surprising to the upside against forecasts of a slowdown to 50.8. Business activity expanded at a solid pace, supported by a further rise in new orders, although the rate of growth eased to a nine-month low amid uncertainty linked to the Middle East conflict.

External demand remained a key weak spot, with export sales declining at the fastest pace since January 2024. Nevertheless, employment continued to increase, extending the current hiring streak to three and a half years. Firms also expanded capacity, as reflected in a slight rise in backlogs of work—the first such increase in four months.

On the cost side, input prices rose at the sharpest rate in nearly three years, driven by higher energy, fuel, and wage costs. In turn, companies passed on these higher costs by lifting output charges at the fastest pace since August 2025.

Despite the ongoing expansion, business confidence slipped to its lowest level since September 2023, with firms voicing concerns about inflation and its potential drag on future demand.