The Spanish economy is reported to be growing at its quickest pace since 2007.
It was the fastest growing economy among the eurozone's 'big four' countries in August, making Spain the region’s “star performer”, according to Markit.
The services sector dominated the rally, causing Markit to brand it the “leading light” of the economy and indicating increased confidence in the domestic market.
August marked the 11th consecutive month of new factory orders and of rising employment, although the country still has a long way to go to conquer its 22% unemployment crisis. The rate remains the second largest in the eurozone after Greece.
The results come three years after Spanish banks were bailed-out.
The general election in Spain, now called for December, will oblige the population to decide if it wishes to continue the austerity programme of Prime Minister Rajoy’s conservative party or go with one of his contenders.
Elsewhere, Italy, Ireland and Germany also performed strongly in August. But there was disappointment in France as the deterioration in the economy bottomed to a seven-month low.
Employment across the euro area was on the up as companies hired more people to deal with increasing business.
Analysts believe that the fear of a Grexit has receded sufficiently to raise confidence in the business environment and boost growth.
Retail sales also bounded back in July, with an average increase of 0.4%. Portugal’s retailers recorded a buoyant 1.1% increase over June and a 1.7% rise when compared to July 2014.
