Services sector activity in Spain rose at a marginally faster rate last month as businesses pass on cost hikes through their prices, the findings from a survey showed on Monday.

The HCOB Spain Services Purchasing Managers' Index (PMI) compiled by S&P Global increased to 51.1 in October from 50.5 in September. The index has remained above the 50-level dividing growth from contraction every month of the last year with the exception of August, Reuters news agency reports. 

Businesses polled by S&P Global stated their operating expenses continued to increase, but the majority safeguarded their margins by hiking prices.

"While the wider European service sector is experiencing continuous downward pressure in business activity, Spanish companies are kicking it up a notch and reviving growth," said Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, within the S&P Global report.

The country's services sector makes up around half of Spain's economic output.

Furthermore, the constant growth in services activity over the past few months in Spain contributed to its overall economic growth, the Reuters report goes on to say. Additionally, with growth being at a faster-than-forecast 0.3% between July and September, it exceeded the majority of large economies within the European Union.

However, in contrast, S&P Global's survey on Spain's manufacturing published last week revealed a seventh straight monthly contraction in October.

Last month, Spain's government hiked its economic growth forecast for this year to 2.4% from a previously estimated 2.1%.