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Spanish service providers continued to benefit from strengthening underlying demand in February, seeing new orders rise sharply. This helped lead to accelerated growth of business activity and a further marked rise in employment. Moreover, companies remained confident that activity will rise again over the coming year.

On the price front, both input costs and output prices rose at sharper rates amid higher staff costs and a greater ability to increase prices for good quality services. The headline seasonally adjusted Business Activity Index improved to 57.3 in February from 56.9 in January. This signalled a sharp monthly increase in service sector output, and one that was the sharpest since July last year. Activity has now risen in each of the past 52 months.

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