Spain Services Sector Growth Slows in January

The HCOB Spain Services PMI fell to 53.5 in January 2026 from December’s 12-month high of 57.1, well below market expectations of 56.6. The latest reading signaled the weakest pace of expansion in services activity since August, though growth remained solid overall. New business growth also eased to its slowest since June, while export sales declined for a second time in three months, with firms pointing to weaker demand from key European markets. Employment growth remained strongly positive and picked up from December, reaching its highest level since last March. On the price front, input cost inflation stayed elevated, with companies citing higher costs for computer hardware and components as well as rising labor expenses, while selling prices increased at the fastest pace in three months. Finally, business sentiment improved slightly, climbing to a ten-month high.