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- Spanish service sector expands at elevated rate during March
Spanish service sector expands at elevated rate during March
According to the report from IHS Markit, Spain's service sector enjoyed its best month in terms of activity growth for over a year during March. Strong domestic demand conditions helped to drive new work higher, whilst another notable increase in employment helped to bolster capacity and allow firms to keep on top of workloads. Business confidence strengthened to its highest level for nine months. Meanwhile, on the price front, rising employment costs meant that average input prices continued to increase at a notable rate. Firms sought to protect margins by raising their own charges.
The headline Business Activity Index improved since February, rising to a level of 56.8, up from 54.5. The latest index reading was the best recorded by the survey since February 2018 and meant the current period of growth in activity now extends to just shy of five-and-a-half years (index readings above 50.0 represent an increase in activity, those below reflect a fall).
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