Spanish services sector keeps giving good news in July

Cost inflationary pressures remained relatively muted, while companies continued to lower their output prices as part of attempts to stimulate new business. However, the extent of discounting in July was the least marked since charges started to tall in August 2008.

The Transport&Storage sector was the strongest performer both in terms of activity and new business, while Financial Intermediation companies posted further sharp expansions.

Service providers continued to take on extra staff during the month, extending the current period of job creation to four months. As unemployment figures published this week show, the unemployment rate fell by 12,518 people in July, -0.45% in comparison with June.

Expectations of further improvements in Spanish economic conditions and the launch of new products supported optimism that activity will rise over the coming year. The level of positive sentiment has remained broadly stable over the past four months.