Prior 55.1Composite PMI 53.7Prior 54.7The expansion in Spain's services sector slowed in August but growth conditions are still supportive, helped by a more positive demand environment. A thing to note though is that prices data showed a pickup in inflationary pressures. Input prices overall rose to the greatest degree sinceFebruary with firms pointing to higher supplier charges in general. So, that's something to be wary of. HCOB notes that:“Spain’s private sector economy continues to hold steady, maintaining a comfortable position despite a modest dip in theHCOB Composite PMI in August. The slight slowdown in overall growth stems from a deceleration in service sector output.However, this was partly offset by a notable acceleration in manufacturing activity growth, signalling a solid stabilisationwithin the private sector. Overall, Spain’s economic performance remains strong, particularly when compared to itsEurozone peers.“The service sector remains in solid shape. On the demand side, business activity growth slowed slightly in August, yet newbusiness continued to develop steadily, in line with the previous month. These consistently positive trends in activity anddemand are reflected in recent developments in employment and capacity. With outstanding business rising notably amidincreasing sales, some panellists also point to shortages in capacity and staffing as key drivers of this surge. As a result,demand for personnel has grown, with the corresponding index now expanding continuously for nearly three years.“Service sector price inflation in Spain remains persistently high. Both input cost and output price inflation continue to exceedhistorical averages and saw acceleration in August. Panellists frequently report sharp increases in supplier prices, alongsiderising fuel and staffing costs. Supported by strong sales and sustained demand, companies felt confident in passing thesecosts on to clients through higher end prices. With this ongoing trend, service price inflation is increasingly becoming a pointof concern.” This article was written by Justin Low at investinglive.com.