Spain’s service sector posts joint-fastest growth in 3.5 years

Spain's service sector experienced its most rapid growth in three and a half years during September, according to S&P Global data. The S&P Global Services PMI Business Activity Index surged to 58.3, marking its highest level since July's peak. This third-quarter average represented the best quarterly performance in five years, with activity surging across various sectors, including consumer services, commercial and professional services, financials, and real estate.

Companies attributed this growth to increased new work, higher inquiries, and strengthened market demand. However, new export business fell for the first time since May, and some firms noted that uncertainty surrounding the Middle East conflict and AI-related spending dampened overall investment. Service sector sentiment dipped to a four-month low due to various global conflicts and competitive pressures.

Employment remained robust, with a 48th consecutive month of growth driven by higher new business levels. Employee numbers increased, linked to the rise in new business. Backlogs of work expanded for a fourth consecutive month, while input costs surged to a six-month high due to rising global energy prices. Companies responded by raising their charges, leading to an acceleration in output price inflation, reaching its strongest level since April.

The S&P Global Spain Composite PMI rose to 56.8 in September, up from 55.8 in August, marking the highest reading since December 2024. Despite manufacturing output growth slowing, services continued to drive expansion. Data were collected from September 10-25, 2026.