MADRID
ACTIVITY in Spain’s dominant service sector unexpectedly fell in August after five months of positive momentum, hit by a hike in value-added tax from July, a key survey showed yesterday.

Markit’s service Purchasing Managers’ Index fell in August to 49.2 from 51.3 in July and below economists’ forecasts for 51.0. It is the first time the index has slipped below the 50.0 line that separates growth from contraction since February.

Economists fear Spain will suffer a slowdown in the final half of the year, or could even tip back into a recession that it only managed to escape in the first quarter.

The Spanish economy grew 0.1 percent in the first quarter and 0.2 percent in the second, some way below the 1.0 percent quarterly growth registered in the euro zone as a whole.

In the survey, the new business index fell to 49.8 from 50.4, while a steady slowdown in outstanding business grew deeper, nearing three years of contraction. “It looks increasingly likely that the anaemic GDP growth seen in the second quarter of the year marks the high point of the recovery for the time being,” said Andrew Harker, economist at data provider Markit.

He said that a 2 percentage point rise in VAT from the start of July to 18 percent had added to problems for service providers as weak demand has largely forced firms to absorb cost increases.

Indeed, while input prices jumped to their highest since November 2008 on the back of the VAT hike, the output price index remained well below 50.0, showing prices were being cut to stimulate demand.

SUNDAY 5 SEPTEMBER
Melon Fair in Vilafranca del Bonany
REI EN JAUME FESTIVITIES IN SANTA PONSA: at 10pm - presentation ceremony of flags and the coranation of the Kings of the festivities and at 11pm classical concert La Joia en El Si de la Mar at the Plaza de la Pinada in Santa Ponsa.

FIESTAS IN SON VERI NOU: at 6pm “raining of stars” at the Passeig de l'Arbreda followed by outdoor theatre at 10pm.

MONDAY 6 SEPTEMBER
Concert by the Australians Pendulum at Mallorca Rocks Hotel in Magalluf. For more info visit www.mallorcarockshotel.com. Awaiting concert time and ticket info.

REI EN JAUME FESTIVITIES IN SANTA PONSA: at 6pm children’s afternoon at the Plaza de la Pinada in Santa Ponsa. At 10pm cinema on the beach with the screening of Avatar in Spanish with English subtitles.

WEDNESDAY 8 SEPTEMBER
REI EN JAUME FESTIVITIES IN SANTA PONSA: at 5.30pm cultural route:arrival of the King, Rei en Jaume. To register call 971 139 181. At 7pm children’s afternoon and 9pm concert:Cuba sings to Majorca at the Plaza de la Pinada in Santa Ponsa.

THURSDAY 9 SEPTEMBER
9.00pm – 32nd International Music Festival in Deya concert by violinist Andres Mustonen from Estonia and pianist Alfredo Oyaguez Montero at Son Marroig (Ctra MA-10 km 65.8) in Deya. Reservations 678 989 536. Tickets 20 euros, 10 euros for students (up to 18 years of age) and members 15 euros.

REI EN JAUME FESTIVITIES IN SANTA PONSA: at 8pm - commemorative acts of the 781th anniversary of the Rei en Jaume’s landing at the Santa Ponsa cross. At 11pm night of fire at Santa Ponsa’s promenade and at 12am foam party at the Plaza de la Pinada in Santa Ponsa.

Concert at the Basilica Sant Francesc in Palma by the Cors Ars Antique de Manacor, Coral de Son Servera, Cor Euroclassics, Coral Filarmonia, Camerata Pollencina, Cor Juvenil Sant Josep Obrer, soprano Assumpta Mateu, mezzosoprano Frédérique Sizaret, tenor Antoni Aragón, bass Pau Bordas, piano Duet Blanco-Cortès, timbales Armando Lorente and director Xavier Gelabert. Awaiting time confirmation.

FRIDAY 10 SEPTEMBER
9pm –Summer concerts at the Palau March in Palma (Palau Reil, 18) with Andres Mustonen from Estonia and pianist Alfredo Oyaguez Montero. Free of charge but reservations needed by calling 971 711 122. Ç REI EN JAUME FESTIVITIES IN SANTA PONSA: at 12pm Medieval market at Santa Ponsa’s beach promenade. At 7'30pm dancing “ball dels escamots” at the Plaza de la Pinada in Santa Ponsa. At 8pm Moors parade from the Plaza de la Pinada passing through the Calle Puig de Galatzó to the roundabout and returning to the Plaza along the promenade. At 10pm concert with Ojos de Serpiente, Horris Kamoi and DJSor Maria Patatilla at the Plaza de la Pinada in Santa Ponsa.

SATURDAY 11 SEPTEMBER
Alternative trade fair in Arta
Irish music, Kletzmer music and Scott Joplin with violinist Andres Mustonen (Estonia) and pianist Alfredo Oyaguez Montero at 9pm at CCA Andratx (C/Estanyera, 2) in Andratx. Tickets 12 euros. Info@ccandratx.com .

3rd Music and Dance on the streets in Palma at6pm at the Rambla dels Ducs de Palma, at 7pm at the Plaza Joan Carles I and at 8pm Avda. Antoni Maura – Parc de la Mar.

REI EN JAUME FESTIVITIES IN SANTA PONSA: at 12pm XVI swim across Santa Ponsa bay departing from the beach. At 12pm Medieval market at Santa Ponsa’s promenade. At 5.30pm gathering of Christian ships at Santa Ponsa’s bay and the Moorish troops at the Santa Ponsa Cross. At 6pm landing of the Christians and gathering of the Moorish troops at the Santa Ponsa Cross. Procession of the Moors and Christians to follow from the Santa Ponsa Cross to the Playa Grande beach. The battles will take place at the Santa Ponsa Cross, on the Caló d’en Pellicer beach and on the Playa Grande in Santa Ponsa. The final battle is at the Santa Ponsa beach. At 11pm - Flower Power Party with music from the 70’s, 80’s and 90’s at the Plaza de la Pinada in Santa Ponsa.

31 st walk from Felanitx to Lluc Monastery. Awaiting details.
Concert at the Santo Domingo cloister in Pollensa by the Cors Ars Antique de Manacor, Coral de Son Servera, Cor Euroclassics, Coral Filarmonia, Camerata Pollencina, Cor Juvenil Sant Josep Obrer, soprano Assumpta Mateu, mezzosoprano Frédérique Sizaret, tenor Antoni Aragón, bass Pau Bordas, piano Duet Blanco-Cortès, timbales Armando Lorente and director Xavier Gelabert. Awaiting time confirmation.

SUNDAY 12 SEPTEMBER
Agriculture, animal, handicraft and industrial fair in Arta
Saint Nicholas Fair in Cas Concos (Felanitx)
Diada de Mallorca (Majorca Celebrations)
REI EN JAUME FESTIVITIES IN SANTA PONSA: at 12pm Medieval market at Santa Ponsa’s beach promenade. At 7pm mass at Santa Ponsa’a church, at 9pm XV Music Festival with bands from Calvia at the Plaza de la Pinada in Santa Ponsa and at 11.30pm fireworks at Santa Ponsa’s beach.