The Spanish service sector continued to see solid growth of business activity during October, in spite of a slowdown in new order growth. The rate of job creation also eased over the month, but business confidence strengthened. On the price front, the rate of cost inflation quickened to a 17-month high, but companies left their output prices unchanged.

The headline seasonally adjusted Business Activity Index posted 54.6 in October, down fractionally from the reading of 54.7 in September but still signalling a solid monthly expansion of business activity. The latest rise extended the current sequence of growth to three years. Where activity increased, panellists mentioned higher new orders and promotions