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Spain’s service sector growth slows in February amid rising costs, PMI shows
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Spain’s service sector growth slows in February amid rising costs, PMI shows

#Spain service sector #PMI February 2026 #Cost inflation #Business confidence #Economic slowdown #HCOB Spain Services PMI #Vendor prices #Output charges

📌 Key Takeaways

  • Spain's service sector growth slowed in February with PMI falling to 51.9 from 53.5 in January
  • New business volumes rose at their weakest rate since mid-2025 while export business declined for the second consecutive month
  • Cost inflation surged to a 12-month high, prompting service providers to raise output charges
  • Employment growth slowed as some firms opted not to replace departing staff
  • Business confidence fell to its lowest level since August 2025 despite remaining cautiously optimistic

📖 Full Retelling

Spain's service sector continued to grow in February at a slower pace as demand softened and cost pressures intensified, according to an S&P Global survey published in Madrid on March 4, 2026, with the HCOB Spain Services PMI falling to 51.9 from 53.5 in January amid cooling market conditions and rising vendor prices. The slowdown in growth was attributed to a cooling in market conditions, with new business volumes rising at their weakest rate since mid-2025, while new export business declined for the second consecutive month, reflecting cautious spending by foreign clients amid macroeconomic uncertainties. Despite the deceleration, employment in the service sector increased, extending a nearly 3-1/2-year growth period, though the rise was the softest since last September as some firms opted not to replace departing staff due to slower demand growth. Cost inflation surged to its highest in a year, driven by increased vendor prices and higher salaries, prompting service providers to raise their output charges at the fastest rate since last October, while business confidence fell to its lowest since August 2025 despite remaining cautiously optimistic about future growth from new projects and marketing efforts.

🏷️ Themes

Economic Growth, Inflation Pressures, Business Confidence, Service Sector Performance

📚 Related People & Topics

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🌐 Inflation 2 shared
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Mentioned Entities

Consumer confidence index

Economic indicator

 Cost-push inflation

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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry South Korean stock trading temporarily halted as KOSPI slides over 11% Goldman lifts oil price forecast amid Hormuz disruptions, lower inventories Asia stocks slide amid Iran tensions, mixed China PMIs; S.Korea slumps 11% Stocks close in the red as widening Middle East conflict sparks inflation fears (South Africa Philippines Nigeria) Spain’s service sector growth slows in February amid rising costs, PMI shows By Economic Indicators Published 03/04/2026, 03:20 AM Updated 03/04/2026, 03:25 AM Spain’s service sector growth slows in February amid rising costs, PMI shows 0 MADRID, March 4 - Spain’s service sector continued to grow in February, albeit at a slower pace, as demand softened and cost pressures intensified, an S&P Global survey showed on Wednesday. The HCOB Spain Services PMI fell to 51.9 last month from 53.5 in January, marking its lowest level since June. PMI readings above 50 indicate expansion, while those below point to contraction. The slowdown in growth was attributed to a cooling in market conditions, with new business volumes rising at their weakest rate since mid-2025. New export business declined for the second consecutive month, reflecting cautious spending by foreign clients amid macroeconomic uncertainties. Employment in the service sector increased, extending a nearly 3-1/2-year growth period. However, the rise was the softest since last September, as some firms opted not to replace departing staff due to slower demand growth. Cost inflation surged to its highest in a year, driven by increased vendor prices and higher salaries. In response, service providers raised their output charges at the fastest rate since last October. Looking ahead, firms remain cautiously optimistic, expecting growth from new projects and marketing efforts. However, overall confidence fell to its lowest since last August, with concerns about a broader economic slowdown impacting expectations. "The Spanish private...
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