Reuters reports that according to the report from IHS Markit, activity in Spain's service sector expanded for the fourth month in a row in July, albeit at a slower pace than in June.

PMI of services companies, which account for around half Spain's economic output, slipped to 61.9 last month from 62.5 in June. The 50 mark separates growth from contraction.

Paul Smith, Economics Director at IHS Markit, said that despite the slight drop, the index "continued to signal a considerable pace of expansion as the economy opens up, sales strengthen further and market demand continues to improve".

"That said, there were some hints of the ongoing challenges faced by the sector, with recent rises in infection numbers reportedly leading to some cancellation of orders and heightened caution, especially amongst foreign clients when booking hospitality," he added.