Spain’s services activity grows in September at fastest pace in a year, PMI shows
3:22 am Thursday, October 03rd, 2024
MADRID (Reuters) – Spanish service sector activity accelerated again in September and registered its fastest growth in more than a year, a business survey showed on Thursday.
The HCOB Spain Services Purchasing Managers’ Index, compiled by S&P Global, rose to 57 in September from 54.6 in the previous month. The index was above the 50 level that separates growth from contraction for a 13th consecutive month and had not been that high since April 2023, when it hit 57.9.
The growth was mainly driven by domestic demand, the survey showed.
“The summer is coming to an end and Spain is coming up with a little surprise, as the latest PMI data shows signs of accelerated growth in September, although we anticipated growth to cool down somewhat in the second half of the year,” Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, was quoted as saying by S&P Global in its monthly report.
Business people showed a stronger confidence in the country’s outlook and took on additional staff, the survey showed, while higher wages pushed up costs, prompting firms to raise their own prices – though at a slower pace than at the start of the year.
The strong services growth follows an acceleration in manufacturing activity last month, according to a sister survey released earlier this week.
The service sector, led by tourism, represents more than half of Spain’s gross domestic product.
The government last month revised up its economic growth forecast for the year to 2.7% after unexpectedly fast 0.8% growth in the second quarter from the previous three months, with Spain outperforming its euro zone peers.
(Reporting by Inti Landauro; Editing by Toby Chopra)
