In June, activity across the service sector showed a pause in momentum. The index compiled by the National Institute of Statistics, reflecting income or the number of employees in these firms, indicated a 1.1% drop from May. After a later uptick, the improvement did not reach the level seen in April. Even though business volume stayed above the previous year by more than 20 points, the year‑over‑year growth appears to be slowing. Within this landscape, the worst performing area remains commerce.
In fact, overall activity is the only metric to slip month over month, down 2.1%, with wholesale trade and trade agents driving the contraction. Business volume fell by 1.6%. It is also the only segment to show weaker employment figures than in May. Labor analysis indicates that the companies facing the greatest challenges are those working with food, beverages and tobacco; those dealing with agricultural raw materials and live animals and their intermediaries. The strain is felt across the supply chain where these sectors intersect with distribution channels and logistics.
On the flip side, the hotel sector shows resilience, increasing activity by 3% versus May and by 54% compared with the same month a year earlier. Hotels, hostels, camping sites, apartments, and other accommodation providers have nearly doubled their turnover year over year. More broadly, this sector mirrors the overall employment trend in services: occupancy rates are up, with nearly two percentage points higher than May and more than 13 points above the previous year. This pattern marks hotels and related accommodation services as the best performing in terms of employment among the service activities.
slowdown in activity
Taken together, the services sector remains 23.5% above its level from a year ago, and no sub‑sector reports a turnover below last year. This year‑over‑year comparison sits below the improvements recorded in May or April, when activity rose by 27% and 25% respectively. Across regions, Balearic Islands led the gains, followed by the Canary Islands and Galicia, which occupied the next spots in the scale of increases. Catalonia posted a reading only slightly above the average, with service sector activity rising 21.6% in that community and ranking sixth, lagging behind Madrid.
In Canada and the United States, similar service sector dynamics are observed as economic conditions shift. Retail and hospitality steady gains align with consumer demand and tourism fluctuations, while wholesale and trade networks adjust to supply chain pressures. Regional patterns suggest that tourism‑heavy areas experience stronger rebounds, alongside metropolitan centers where business services and professional sectors drive hiring and hours worked. Overall, the service economy remains a major component of growth, with employment trends closely tied to sector health and consumer activity across North America.