The services sector in 2023 posted an average revenue growth of 2.4 percent, marking a third straight year of rising sales as reported by the National Statistics Institute (INE). This continuation shows resilience across service industries, with steady demand and continued momentum into the year.
However, the 2023 uptick was smaller than the record increase seen in 2022, which approached 20 percent, and it also trails the 15.8 percent surge that occurred in 2021. These fluctuations reflect shifts in consumer spending, business investment, and the reopening phase after recent health restrictions, as noted by INE statistics.
Employment within the services sector rose by an average of 1.9 percent in 2023, two percentage points lower than the pace in 2022. Despite this moderation, job levels in services continued a three-year ascent following the pandemic-related decline in 2020, illustrating a gradual recovery in labor demand alongside broader economic normalization, as documented by INE.
After adjusting for seasonal and calendar effects, service sector revenues increased by 2.7 percent for the whole year of 2023, with sales rising 0.8 percent in commerce and 6.6 percent in other services. These sub-sector performances highlight diverse growth drivers within the services complex, including commerce stabilization and stronger activity in auxiliary service categories, according to INE figures.
In December 2023, the gross turnover for services, before seasonal and calendar adjustments, declined by 0.7 percent relative to December 2022, a rate 1.2 percentage points lower than the rate observed in November. This monthly softening aligns with typical year-end patterns in some service lines, as explained by INE data.
On a monthly basis, December 2023 versus November 2023, service turnover excluding seasonal and calendar effects fell by 0.1 percent, contrasting with the 1 percent monthly increase recorded in November. This small month-to-month dip may reflect brief demand pauses or price effects, and it sits within the broader trajectory of gradual service-sector expansion noted by INE.