Spain’s service sector continued to expand in May, but the pace of growth slowed slightly from an eight-and-a-half year peak, survey data from Markit Economics showed Wednesday.
The Purchasing Managers’ Index for the service sector dropped to 58.4 in May from 60.3 in April. It was forecast to fall to 59.4.
The indicator signaled a sharp overall expansion of business activity in the service sector. A reading above 50 indicates expansion.
As with activity, the rate of growth in new business remained strong despite easing from the previous month. Orders have risen continuously since August 2013.
Service providers lifted the pace at which they took on extra staff for the sixth straight month to the fastest since September 2007.
On the price front, input prices increased for a third straight month, with inflation quickening to the steepest in almost four years. Charges levied by service providers decreased marginally, with the rate of deflation slowing to the weakest since output prices began to fall in August 2008.