Spain's Service Sector Growth in December

In a promising sign for Spain's economy, the service sector experienced significant growth in December. According to a report released by S&P Global and Hamburg Commercial Bank (HCOB), the seasonally adjusted HCOB Spain Services PMI Business Activity Index reached 57.3, up from 53.1 in November. This marks the strongest monthly increase in business activity since April 2023.

Underlying Demand Drives Growth

Companies have pointed to robust underlying demand for their services as the primary driver of this growth. The improvement in the order situation further underscores the sector's recovery. Additionally, the aftermath of the DANA weather phenomenon, which led to severe flooding in the Valencia region, has resulted in a surge in insurance and reconstruction cases, contributing to the uptick in orders.

Expert Insight

"The services sector saw a significant boost in activity in December, reflecting an improved order scenario. The DANA weather event's impact, with its resultant insurance and reconstruction demands, has also played a crucial role in generating additional orders," commented Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank.