He Spanish service sector experienced a solid expansion in Marchaccording to the PMI index. However, the conflict in the Middle East hampers demand growth, increases prices and puts confidence at its lowest level since September 2023. The evolution of growth in the coming months will largely depend on the duration of the war in the Middle East. As highlighted by S&P Global Market Intelligence, «The conflict has already generated great uncertainty for both companies and consumers». «Companies noted that new order growth has slowed in the service sector and that new orders from overseas customers, which were already under pressure before the start of the war, have deteriorated sharply. In addition, service companies are experiencing sharp increases in their energy and fuel bills, resulting in the largest increase in overall input costs in almost three years. With sales prices also rising markedly, companies are understandably concerned about the impact on high prices will have on short-term spending and, therefore, on your business performance over the coming months,» they say. Specifically, the S&P Global PMI index of commercial activity in Spain’s services sector increased from 51.9 recorded in February to 53.3 in March, indicating a stronger pace of activity growth. However, during the first quarter of the year, the average reading of the index was notably lower than the usual one observed in the last three months of 2025. —expanding—
