Spain services growth picks up despite rising costs
Spanish services activity rose to 53.3 in March despite high input costs. Confidence fell to a multi-year low as firms worry about Middle East war impacts.
The services sector in Spain expanded at a faster clip in March, though the momentum is being tested by escalating costs and a cautious outlook linked to geopolitical tensions. According to the latest survey from S&P GLOBAL INC, the Services PMI Business Activity Index climbed to 53.3 from 51.9 in February, marking continued growth above the critical 50.0 threshold.
Operating expenses for service firms have surged, with input cost inflation reaching its highest point since April 2023. This trend is being driven by significant increases in energy and fuel costs, alongside rising wages. In response, companies have raised their output prices at the fastest rate since August 2025, although these adjustments have not fully offset the rising costs of doing business.
