FX.co ★ Spain Services PMI Expands Less than Expected

The HCOB Spain Services PMI fell to 54.7 in March 2025, down from 56.2 the previous month, missing market predictions of 55.5. Despite marking its nineteenth month of consecutive growth, this was the slowest increase since November 2024, largely due to less favorable demand conditions compared to earlier in the year. Consequently, the growth in new business weakened, posting its slowest pace since August 2024. However, new export business showed a stronger uptick, attributed to increased tourist activities. Meanwhile, there was a notable rise in employment within the sector, with hiring rates surpassing historical averages. On pricing, input costs slightly eased but remained higher than historical norms, while output prices continued to climb as businesses passed these increased operational costs onto clients. Nevertheless, service providers expressed optimism regarding future growth, citing planned commercial strategies and investments in new technologies as key drivers.