Spain's services sector grew slightly in November as companies completed backlogs of work but new orders declined, a survey showed on Tuesday.

The HCOB Spain Services Purchasing Managers' Index (PMI) compiled by S&P Global fell to 51 from 51.1 in October. The indicator has been above the 50 level, which marks growth in activity, every month since November 2022 except in August.

Even though activity kept on growing in November, business people surveyed by S&P Global said new orders fell during the month and most of the growth came from backlogs.

Clients are hesitating citing the uncertainty about the economic outlook, people surveyed said.

Companies continued to hire staff though, although that resulted in higher wage costs, adding to overall costs for most businesses.

Spain's services sector accounts for around half of the country's economic output.

The consistent growth in services activity in recent months contributed to Spain's overall economic growth which, at a faster than expected 0.3% in the third quarter, surpassed most large European Union economies.

The government recently raised its economic growth forecast for this year to 2.4% from a previous 2.1%.

Still, S&P Global's sister survey on Spanish manufacturing released last week showed an eighth consecutive monthly contraction in November. (Reporting by Inti Landauro; Editing by Susan Fenton)