Spain's services sector sustains strong growth in August

Spain's services sector maintained strong growth in August, with the S&P Global Services PMI Business Activity Index reaching 57.8, slightly down from 58.3 in July but the second-best reading in nearly three and a half years. Growth was driven primarily by domestic demand, with strong increases in activity and new orders. Commercial, Professional, Financial, and Real Estate services performed particularly well, while Transport was the only sector reporting a decline. New export orders rose modestly amid geopolitical uncertainty. Employment increased for the fourth consecutive month, though at a slower pace. Business confidence fell to a three-month low, and input costs rose mainly due to energy and fuel expenses. The Composite PMI stood at 55.8, with manufacturing output declining to its largest drop since December 2023.