The HCOB Spain Services PMI fell to 53.2 in August 2025 from a five-month high of 55.1 in the previous month, falling short of market expectations of 54.9. Nevertheless, the reading marked the 24th consecutive month of expansion in the sector, underpinned by a second straight month of growth in new business. Some firms attributed the uptick in new orders to the finalization of previously delayed contract agreements. In addition, businesses continued to expand their workforce, marking nearly three years of uninterrupted employment growth amid a sustained rise in workloads. On the inflation front, cost pressures intensified, with input prices rising at the fastest rate since February, driven by higher supplier fees and labor costs. In response, service providers raised their selling prices at the sharpest pace since April 2024. Finally, business sentiment remained optimistic, supported by plans to enhance products and services, which are expected to drive growth over the coming year.