Latest Financial Updates from Spain and the UK, August 7th
The services sector in Spain experienced a significant boost in July 2025, with the HCOB Spain Services PMI climbing to 55.1, marking its fastest growth since February. This robust expansion indicates strong activity and accelerated growth within the sector [3][5].
The private sector as a whole also showed strong performance, with the composite PMI rising to 54.7 in July from 52.1 in June, signifying the strongest private sector expansion since February [1]. This growth was accompanied by a rapid increase in new business, reaching the fastest growth since February [1][5].
The optimistic economic outlook has led to increased job creation at the fastest pace in four months, further reinforcing positive expectations for the services sector [1]. However, inflationary pressures remain, with selling price inflation running well above historical averages, which could influence future cost and pricing dynamics in the sector [1]. Moderate inflation in Spain, with annual CPI around 2.7% in July 2025, may also impact the economic environment in which the services sector operates [2][4].
Meanwhile, other notable developments in Spain include Burger King and Iberdrola España signing a long-term deal for 1,900 GWh of renewable electricity, powering over 900 Spanish restaurants [2]. Elena Cabrera, former Ryanair country manager for Spain, Portugal, France, and Morocco, has been appointed to lead W2M's international growth, driving the Spanish group's expansion into markets like Morocco and Central Europe [3].
In unrelated news, Gibraltar has been removed from the EU's list of high-risk third countries, following significant improvements to its anti-money laundering (AML) and counter-terrorism financing (CFT) systems [4]. On the M&A front, the market in Spain experienced a 17% decrease in July 2025 [5].
Banco Sabadell has partnered with DXC Technology to enhance the accessibility of its digital banking services, aiming to meet Spanish and EU accessibility standards and improve inclusion for its 12 million users [6]. In the UK, the services sector is also making headlines, with nearly half of businesses now wanting staff back in the office full-time [7].
In other business news, Lufthansa has withdrawn from talks to buy into Air Europa, leaving Turkish Airlines as the Spanish carrier's sole option for a potential buyer [8]. South Korean tech giant Naver has acquired Spain's largest second-hand marketplace, Wallapop, for €377 million [9]. The UK Government plans to remove age bands from the minimum wage system, moving towards a single adult rate [10].
The British Chambers of Commerce reports that some firms are linking bonuses to staff returning to the office, while according to LOQBOX's 2025 Parents' Planner, 81% of UK parents feel financially strained this summer, with over half worse off than last year [11]. In Spain's financial sector, MAPFRE AM is now the country's largest non-bank asset manager, managing €39.67 billion, with profits reaching €25.95 million in H1 2025, a 19.4% increase [12].
References:
- HCOB Spain Services PMI
- Burger King and Iberdrola España deal
- Elena Cabrera's appointment at W2M
- Gibraltar removed from high-risk list
- M&A market decrease in Spain
- Banco Sabadell and DXC Technology partnership
- UK businesses wanting staff back in the office
- Lufthansa withdraws from Air Europa talks
- Naver acquires Wallapop
- UK Government plans to remove age bands from minimum wage system
- UK parents feeling financially strained
- MAPFRE AM's growth and profits
- The robust expansion of the private sector, as indicated by the composite PMI, suggests a strong performance in the business sector as well.
- In the financial sector, MAPFRE AM has become Spain's largest non-bank asset manager, demonstrating significant growth in the finance industry.
