The Spanish service sector remained in growth territory at the start of 2017 amid a sharper expansion of new business. Business activity and employment rose solidly again while expectations regarding the 12-month outlook were the highest since last April. Companies recorded a steeper increase in input costs, but the rate of inflation of output prices remained marginal.

The headline seasonally adjusted Business Activity Index posted at 54.2 in January, down from 55.0 in the previous month but still signalling a solid monthly increase in activity