Key facts
- The S&P Global Spain Services PMI Business Activity Index fell to 57.2 in October from 58.3 in September.
- New export business contracted for a second straight month, and new business growth eased to a five-month low.
- Input price inflation accelerated to its highest level since March on higher energy, fuel and transport costs.
- Paul Smith of S&P Global Market Intelligence said the October reading indicated a positive start to the fourth quarter for economic growth.
- Business confidence reached its highest level since February, with firms citing hopes for the November 29 general election.
Spain's services sector grew in October but at a slower pace than in each of the previous three months, according to a business survey reported by Reuters on November 4. The S&P Global Spain Services PMI Business Activity Index fell to 57.2 in October from 58.3 in September. A reading above 50 indicates expansion.
New business volumes rose again, but growth eased to a five-month low, and new export business contracted for a second straight month. Employment increased, extending a run of job creation to more than four years, and the pace of hiring was the strongest since July.
Input price inflation accelerated to its highest level since March, with companies reporting higher energy, fuel and transport expenses. Output price inflation eased from September's five-month high.
Business confidence strengthened to its highest level since February. Firms cited previous investment plans and hopes that the general election on November 29 may bring positive change.
Paul Smith, economics director at S&P Global Market Intelligence, said: "Spain's services economy continued to expand at an above-average rate during October and was therefore indicative of a positive start to the final quarter of the year in terms of economic growth."
The sister manufacturing index, released on Monday, expanded in October at its fastest pace since August 2025.