The HCOB Spain Services PMI climbed to 55.1 in July 2025 from 51.9 in the previous month, easily surpassing market expectations of 52.5. This marked the twenty-third straight month of growth and the strongest expansion since February, driven largely by a sharp rise in business activity and new orders - both increasing at their fastest pace since February. This momentum was supported by stronger domestic demand, effective marketing initiatives, and enhancements in service quality. On the employment front, service providers continued to expand their workforce, with job creation reaching its highest rate since March, extending an almost three-year streak of uninterrupted hiring. On the price front, input costs remained high, while output prices rose to their highest level since May 2024. Lastly, business confidence remained upbeat, underpinned by planned commercial initiatives and expectations of launching new services.