MADRID (Reuters) - Spain's services sector expanded at a slower pace in April than in the previous four months on concerns over tariffs and other market uncertainties, a survey showed on Tuesday. The
Spanish Services Sector Growth Slows in April Amid Uncertainty
MADRID (Reuters) -
Spain's services sector expanded at a slower pace in April than in the previous four months on concerns over tariffs and other market uncertainties, a survey showed on Tuesday.
The HCOB Spain Services PMI Business Activity Index, computed by S&P Global, fell to 53.4 in April from 54.7 in March, marking the lowest reading since last November. Despite the slowdown, the index remained above the 50.0 threshold, indicating ongoing growth. The index has expanded for 20 consecutive months.
"Service providers report a more challenging work environment. This is not surprising, given the increasing tensions in international markets – keywords: trade frictions – which led to postponed or cancelled consumption and investment decisions," Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said in the monthly S&P report.
Worries associated with tariffs and broader uncertainty weighed on market expectations, which were at their lowest since last November, S&P said.
A sister survey last week showed Spain's manufacturing sector contracted in April for a third consecutive month.
Spanish economic growth slowed slightly in the first quarter to a still solid quarterly 0.6%, the National Statistics Institute said last week. The government expects the economy to expand 2.6% this year, down from 3.2% in 2024.
(Reporting by Inti Landauro; Editing by Toby Chopra)
