The HCOB Spain Services PMI rose to 57.3 in December 2024, up from 53.1 in November and significantly surpassing market expectations of 54.1.
Spain services PMI soars to 16-month high
This marked the sixteenth consecutive month of growth and the most substantial expansion since April 2023. The increase was driven by strong underlying demand and a return to regular market activity following the disruption caused by the Depresión Aislada en Niveles Altos (DANA) weather phenomenon. Employment continued to grow for the 27th consecutive month, reflecting ongoing strength in the labor market.
Input costs surge, driving output inflation; business confidence rises
On the pricing front, input costs reached a five-month high, driven by rising wages, supplier charges, and higher fuel prices. Service providers responded by passing these increased costs to clients, resulting in a six-month high output price inflation. Business confidence improved in December, with overall optimism reaching its highest since May 2024.
