The S&P Global Spain Services PMI rose to 50.1 in May 2026 from 47.9 in April, beating market expectations of 48 and signalling a stabilisation in activity after the previous month’s contraction. The modest improvement was underpinned by a return to growth in new business, supported by firmer demand. However, overall expansion remained subdued, as uncertainty related to the Middle East conflict continued to weigh on market conditions and export orders declined for a fifth consecutive month.
Input costs increased sharply, driven mainly by higher energy and fuel prices, as well as rising supplier and labour expenses. In turn, service providers raised their selling prices, though output price inflation eased to a three-month low. Business confidence picked up slightly but stayed below its historical average amid persistent geopolitical uncertainty. Even so, firms increased staffing levels, with employment growth strengthening through a combination of temporary and permanent hires.
