MADRID (Reuters) -Spain’s services sector experienced a significant boost in July, with activity rising at its fastest pace since February, driven by firmer domestic demand, a survey by S&P Global showed on Tuesday.
The HCOB Spain Services PMI Business Activity Index jumped to 55.1 in July from 51.9 in June, marking the highest level since February, when it was 56.2. PMI readings above 50 denote growth while those below suggest contraction.
The indicator has reflected growth in activity in every month since September 2023.
Domestic demand was much stronger than foreign demand, according to those polled by S&P.
“As the second half of the year begins, the Spanish economy is exhibiting broad-based expansion, supported by both the services and manufacturing sectors,” said Hamburg Commercial Bank economist Jonas Feldhusen.
The strong services growth together with a robust growth of the manufacturing sector reported by a sister survey on Friday bode well for the country’s economic growth in the third quarter.
The National Statistics Institute said last week that Spanish gross domestic product growth came to a stronger-than-expected 0.7% in the second quarter.
The PMI data “reinforces expectations that the current growth trajectory could persist in the coming quarters,” Feldhusen said.
The government expects 2.6% growth this year, much faster than expected in the euro zone’s other large economies.
(Reporting by Inti Landauro; Editing by Hugh Lawson)
