Survey results on Thursday showed Spain’s services sector activity grew at the fastest pace in five months in December, supported by an increase in new business and the headwinds of a slowing economy across Europe.
The HCOB Spanish Services Purchasing Managers’ Index (PMI) compiled by S&P Global was 51.5, up from 51.0 in November. This indicator has been above 50 (the dividing line between growth and contraction) every month since November 2022, except for August.
As one of the most visited countries in the world, the services sector, including tourism, accounts for about half of Spain’s economic output.
Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank, said: “In contrast to the general economic downturn in Europe, the Spanish services sector seems to be heading in its own direction,” adding that companies are also He added that he is increasingly optimistic about next year’s output. 12 months.
“Although we are far from a full-blown boom, the resilience is remarkable,” he said, predicting Spain’s economy would maintain its growth trajectory in the fourth quarter and “enter the new year from a solid starting point.” .
Service providers have increased hiring, but this has resulted in higher labor costs and increased overall costs for most companies, the study showed.
Consistent growth in services activity in recent months has contributed to Spain’s overall economic growth, which grew by a better-than-expected 0.3% in the third quarter, outpacing most major economies in the European Union (EU).
The government forecasts the economic growth rate in 2023 to be 2.4%.
Still, S&P Global’s sister survey of Spanish manufacturing, released Tuesday, showed December was the ninth straight month of negative growth. (Reporting by Andrei Kalip; Editing by Hugh Lawson)