FX.co ★ Spain Services PMI Expands More than Expected

In June 2025, the HCOB Spain Services PMI increased to 51.9 from May's 51.3, exceeding the anticipated market figure of 51. Although this marks the twenty-second consecutive month the sector has expanded, the growth rate is still restrained and notably weaker compared to earlier months in the year. New business volumes experienced a downturn for the first time in over eighteen months, indicative of diminishing demand both domestically and internationally as part of a broader economic slowdown. Despite this, service providers continued to boost their workforce in response to previous peaks in new business, ensuring they could manage workloads effectively. On the cost side, operating expenses saw a significant rise due to increased supplier prices, labor costs, and transportation expenses. Consequently, service providers increased their selling prices, resulting in the most substantial hike in output charges within a year. Nevertheless, business confidence remains robustly positive.