The HCOB Spain Services PMI declined to 51.9 in February 2026 from 53.5 in January, marking its lowest reading since June and falling short of market expectations of 52.8. Growth in new business slowed, as foreign demand contracted for the third time in four months, leaving the expansion increasingly reliant on domestic clients.
Employment continued to rise, extending the current hiring streak to nearly three and a half years. However, job creation was the weakest since September, with some firms opting not to replace departing staff amid softer expectations, which fell to a six-month low. Capacity pressures remained modest, as backlogs of work decreased slightly for the third consecutive month.
On the cost side, input prices increased at the fastest pace in a year, driven by higher supplier charges and rising wages. In turn, firms raised their output prices at the sharpest rate since October, marking a third consecutive month of accelerating output price inflation. Although firms still anticipate stronger activity over the coming year, overall business confidence slipped to its lowest level since August.
