The total services turnover index increased by 2.0% between the third and fourth quarters of 2025, after adjusting for seasonal effects and the working-day pattern, according to data released by the National Statistics Office (NSO). The figures pointed to sustained momentum in the services sector at the end of the year.
The strongest quarterly expansion was recorded in motor vehicles trade, where turnover rose by 6.3%. This was followed by information and communication (up 5.0%) and administrative and support service activities (up 4.1%). Wholesale trade also posted solid growth of 3.6%, while professional, scientific and technical activities expanded by 2.5%.
More moderate increases were observed in accommodation and food service activities (1.3%) and retail trade (1.0%).
However, not all segments shared in the expansion. Transportation and storage saw a decline of 1.8% while real estate activities contracted by 1.6% during the same period.
The quarterly data suggest that consumer-facing and business-support services were key drivers of growth, while logistics and property-related activities faced headwinds, potentially reflecting softer demand or cost pressures in those areas.
Labour market indicators also strengthened in quarterly terms. Between the third and fourth quarters of 2025, the number of persons employed increased by 1.5%. Gross wages and salaries rose by 2.5%, outpacing employment growth, while hours worked went up by 1.2%.
The faster rise in wages compared to both employment and hours worked may indicate tightening labour market conditions in parts of the services sector, or the impact of wage adjustments amid inflationary pressures.
On an annual basis, the total services turnover index increased by 3.5% in the fourth quarter of 2025, after adjusting for the working-day pattern.
The strongest year-on-year growth was recorded in transportation and storage, which surged by 10.2% Real estate activities followed with an 8.3% increase, while accommodation and food service activities rose by 7.6%. Retail trade also posted solid growth of 7.2%.
Administrative and support service activities grew by 3.7%, and wholesale trade recorded a 1.8 per cent increase.
In contrast, motor vehicles trade declined by 6.4%compared to the fourth quarter of 2024. Professional, scientific and technical activities fell by 2.2%, while information and communication registered a marginal decrease of 0.8%.
The divergence between quarterly and annual trends in some sectors – notably motor vehicles trade and transportation and storage – suggests shifting dynamics within the services economy, with some industries recovering strongly on a yearly basis despite short-term fluctuations.
Compared to the fourth quarter of 2024, employment in the services sector rose by 2.5%, while gross wages and salaries increased by 6.2%. Despite these gains, hours worked declined slightly by 0.1% year-on-year.
The combination of higher employment and wages alongside a marginal drop in hours worked may reflect changes in work patterns, productivity adjustments, or increased reliance on part-time or flexible employment arrangements.
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