Market news

3 June 2021

Spain’s service sector expands at fastest rate since August 2015

According to the report from IHS Markit, Spain’s service sector extended its recent recovery into May, expanding at its strongest rate since August 2015 as a lifting of COVID-19 restrictions led to a more widespread reopening of business units and a noticeable uplift in demand.

The headline Business Activity Index rose to 59.4 from 54.6 in April. That signalled a back-to-back increase in activity levels and the single strongest monthly growth recorded by the survey since August 2015.

Underpinning the rise in activity was a strong rise in new business volumes (the best since the start of 2018). Panellists widely reported that the lifting of COVID-19 restrictions had led to not only further business unit re-openings, but also a noticeable rise in demand and sales, especially from domestic sources. Although there were some signs of strengthening foreign demand and a first rise in overall new export business for the first time in over two years, the rate of growth was modest and much lower than for total new work. With sales rising noticeably, capacity was tested somewhat. Backlogs of work outstanding rose for the second month in succession, and at the sharpest pace since July 2015. In response, companies added to their payroll numbers, and May data indicated a second successive monthly increase in overall service sector employment. The rate of growth was also the sharpest recorded by the survey for over two years.

Confidence in the outlook also encouraged companies to take on additional staff. Once again over 60% of surveyed firms anticipate a rise in activity from present levels in 12 months’ time, and overall confidence was only slightly lower than in April when sentiment was at its most positive in over 17 years. Expectations continue to be supported by positive projections for sales and demand as COVID-19 restrictions are lifted in line with hoped for success with vaccination programmes.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2021 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Telerade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Telerade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.