Wednesday January 15 2020
Spain Inflation Rate Confirmed at 7-Month High
INE | Joana Taborda | joana.taborda@tradingeconomics.com

Annual inflation rate in Spain increased to 0.8 percent in December of 2019 from 0.4 percent in November and in line with the preliminary figures. It is the highest inflation rate in seven months. The monthly rate fell to -0.1 percent from 0.2 percent.

The biggest upward pressure came from prices of transport (4 percent), as cost of fuels and lubricants rose in 2019 compared to a fall in the previous year. Prices also went up for air transportation. Other rises were seen in cost of food and non-alcoholic beverages (1.7 percent); hotels, cafes and restaurants (2 percent); recreation and culture (0.1 percent); miscellaneous goods and services (1.4 percent); clothing and footwear (0.9 percent); health (0.5 percent); communication (0.7 percent); and education (0.9 percent). On the other hand, downward pressure came from cost of housing (-5 percent), due to a fall in electricity prices. 

The harmonized index also came at 0.8 percent (0.5 percent in November) and the monthly rate was -0.1 percent after a flat reading in the previous month.




Monday December 30 2019
Spain GDP Growth Confirmed at 0.4% in Q3
Joana Taborda | joana.taborda@tradingeconomics.com

The Spanish economy expanded 0.4 percent on quarter in the three months to December of 2019, unrevised from the preliminary estimate and the same as in the previous quarter. It is the lowest sequence of growth since the first half of 2014. Exports stalled and investment went up more than expected while household spending growth was revised lower.

Household spending growth was revised lower (0.8 percent compared to a preliminary of 1.1 percent), as well as public expenditure (0.6 percent compared to 0.9 percent). On the other hand, gross fixed investment increased more than anticipated (1.7 percent compared to 1.3 percent), mainly boosted by investment in machinery, equipment, weapon system and biological resources (4.8 percent compared to 7 percent) and intellectual property products (1.5 percent compared to 1.4 percent), while investment in housing, other buildings and constructions edged down 0.3 percent, much less than a 2.6 percent drop in the preliminary estimate.

Meanwhile, the drag from net external demand was smaller than expected as exports were flat (compared to -0.8 percent) and imports rose 1.8 percent (compared to 1.3 percent).

Year-on-year, the economy grew 1.9 percent, below an initial estimate of 2 percent. It is the lowest annual growth since the third quarter of 2014.




Monday December 30 2019
Spain Inflation Rate Picks Up to 7-Month High
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The annual inflation rate in Spain is expected to rise to 0.8 percent in December 2019 from 0.4 percent in the previous month and slightly below market estimates of 0.9 percent. It is the highest inflation rate since May, mainly driven by fuel prices while electricity tariffs should decrease, preliminary figures showed.

On a monthly basis, consumer prices are set to drop 0.1 percent, after increasing 0.2 percent in the previous month.

The EU-harmonised index is likely to advance 0.8 percent year-on-year, compared to 0.5 percent in November and slightly below market expectations of 1 percent. Compared to the previous months, the index is seen decreasing 0.1 percent, after being flat in the prior month and against market expectations of a 0.2 percent decline.


Friday December 20 2019
Spain Trade Balance Narrows as Exports Hit Record
Ministerio de Industria, Comercio y Turismo | Joana Ferreira | joana.ferreira@tradingeconomics.com

Spain's trade deficit narrowed to EUR 2.58 billion in October 2019 from EUR 3.88 billion in the same month last year, as exports rose 1.7 percent to an all-time high while imports dropped 2.7 percent.

Exports increased 1.7 percent from a year earlier to an all-time high of EUR 26.86 billion in October, boosted by sales of chemical products (5.8 percent) such as medicines (14.5 percent) and essential and scented oils (10.9 percent); vehicles (13.8 percent); consumer goods (8.4 percent) on the back of textiles (8.0 percent); food, drinks and tobacco (12.0 percent) led by fruits and vegetables (9.7 percent) and meat products (45.1 percent); and capital goods (1.7 percent) due mainly to machinery for industry (1.4 percent). On the other hand, exports of non-chemical semi-manufactured goods and energy products declined 6.4 percent and 25.6 percent, respectively.

Among major trade partners, exports to the Euro Area rose 2.9 percent, in particular to Germany (7.7 percent), France (1.2 percent), Italy (2.9 percent) and Portugal (5.2 percent). Also, sales were up to the UK (5.1 percent), the US (12.7 percent), China (4.9 percent), and Morocco (8.6 percent).

Imports fell 2.7 percent to EUR 29.44 billion, due to lower purchases of energy products (-29.7 percent) such as petroleum and derivatives (-23.7 percent) and natural gas (-48.6 percent); non-chemical semi-manufactured goods (-5.2 percent) led by iron and steel (-8.5 percent), nonferrous metals (-7.3 percent) and paper (-6.4 percent); and raw materials (-13.4 percent) on the back of minerals (-14.6 percent) and animals and vegetables (-10.5 percent). By contrast, imports rose for chemical products (5.9 percent), capital goods (3.5 percent), consumer goods (6.3 percent), and food, drinks and tobacco (7.3 percent).

Imports from the Eurozone were little-changed, as declines from Germany (-0.2 percent), France (-1.7 percent) and Italy (-8.3 percent) offset increases from the Netherlands (9.3 percent) and Portugal (8.2 percent). Purchases also fell from Turkey (-6.2 percent), Poland (-5.4 percent) and Switzerland (-9.7 percent), but were higher from the UK (12.5 percent), the US (27.0 percent) and China (3.5 percent).

Considering January-October, the trade deficit narrowed slightly to EUR 28.02 billion from EUR 28.56 billion in the same period of 2018, with exports rising 1.6 percent and imports advancing at a softer 1.5 percent.




Friday December 13 2019
Spain Inflation Rate Confirmed at 4-Month High of 0.4%
INE | Agna Gabriel | agna.gabriel@tradingeconomics.com

The annual inflation rate in Spain increased to 0.4 percent in November 2019 from 0.1 percent in the previous month and in line with preliminary estimates. It was the highest inflation since July.

Year-on-year, prices rose at a faster pace for food & non-alcoholic beverages (1.7 percent from 1.2 percent in October) and restaurant & hotels (2.0 percent from 1.9 percent). In addition, cost rebounded for transport (0.4 percent from -0.8 percent). Meantime, inflation was steady for miscellaneous goods & services (at 1.4 percent); furniture & household equipment (at 0.8 percent) and alcoholic beverages & tobacco (0.4 percent). By contrast, prices slowed for clothing & footwear (1.0 percent from 1.1 percent); health (0.6 percent from 0.8 percent); communication (0.8 percent from 0.9 percent) and education (0.9 percent from 1.2 percent). Also, cost fell further for housing & utilities (-4.1 percent from -3.9 percent). 

Annual core inflation, which excludes volatile items such as unprocessed food and energy, went up to 1.0 percent, the same as in the previous month. 

On a monthly basis, consumer prices edged up 0.2 percent, after rising 1 percent in the previous month, in line with a flash estimate. 

The EU-harmonised index increased 0.5 percent over a year earlier (vs 0.2 percent in October) and showed no growth from the previous month (vs 0.7 percent in October).


Thursday November 28 2019
Spain Inflation Rate Highest in 4 Months
INE | Joana Taborda | joana.taborda@tradingeconomics.com

The inflation rate is Spain is expected to pick up to 0.4 percent in November of 2019 from 0.1 percent in October, beating market expectations of 0.2 percent. It is the highest inflation rate in four months amid a stability in prices of fuel and food and non-alcoholic beverages, compared to falls in 2018, preliminary figures showed.

On a monthly basis, consumer prices are expected to advance 0.2 percent in November, following a 1 percent jump in October. 

The EU-harmonised index should rise 0.5 percent year-on-year, higher than 0.2 percent in October and in line with market forecasts. Compared to the previous month, the index is likely to be flat, after a 0.7 percent gain in October and compared to market expectations of a 0.6 percent rise.


Thursday November 21 2019
Spain Posts Largest September Trade Gap in 8 Years
Ministerio de Industria, Comercio y Turismo | Stefanie Moya | stefanie.moya@tradingeconomics.com

The Spanish trade deficit widened to EUR 4.26 billion in September 2019 from EUR 3.30 billion in the corresponding month of the previous year. It was the largest trade gap for a September month since 2011, as imports rose 8.9 percent and exports increased at a softer 5.8 percent. Considering the third quarter as a whole, the country recorded a EUR 10.73 billion trade shortfall.

Imports went up 8.9 percent over a year earlier to EUR 27.73 billion in September, boosted by higher purchases of equipment goods (14.1 percent); automotive sector (16.3 percent); food, beverages and tobacco (14.5 percent); chemicals (2.6 percent); manufactured consumption goods (12.3 percent); durable consumer goods (8.7 percent); energy products (1.2 percent); and other products (69.7 percent). On the other hand, purchases dropped for non-chemicals semi-manufactures (-1.2 percent); and raw materials (-0.6 percent).

Among major trading partners, imports rose from the Euro Area (8 percent), namely France (11.1 percent); Germany (7.2 percent) and Portugal (11.6 percent); China (11.9 percent); and the US (20.5 percent).

Exports advanced at a softer 5.8 percent from a year ago to EUR 23.47 billion, driven by higher higher sales of automotive sector (17.1 percent); food, beverages and tobacco (10.8 percent); chemicals (7.4 percent); manufactured consumption goods (10.4 percent); other products (+47.3 percent); and durable consumer goods (0.1 percent). In contrast, sales fell for non-chemicals semi-manufactures (-3.6 percent); energy products (-4.4 percent); and raw materials (-9.4 percent). 

Among major trading partners, sales increased to the Euro Area (5.2 percent), of which Germany (3.6 percent), France (2.4 percent), Portugal (5.2 percent) and Italy (12.3 percent); China (12.3 percent); and the US (15.1 percent).

Considering the first nine months of the year, the country's trade shortfall increased to EUR 25.45 billion from EUR 24.19 billion in the same period of 2018, as imports advanced 2 percent to EUR 241.05 billion and exports rose 1.6 percent to EUR 215.60 billion.


Thursday November 14 2019
Spain Inflation Rate Confirmed at 3-Year Low
INE | Joana Taborda | joana.taborda@tradingeconomics.com

The annual inflation rate in Spain was steady at 0.1 percent in October of 2019, the same as in the previous month and in line with preliminary figures. It remained the lowest rate since August of 2016.

The biggest downward pressure on the CPI came from prices of transport (-0.8 percent compared to a flat reading in September), namely fuels and lubricants and air transport of passengers; and recreation and culture (-0.2 percent compared to 0.1 percent), namely tourist packages. On the other hand, the highest upward pressure came from cost of housing (-3.9 percent compared to -4.8 percent), due to a rise in electricity cost; and food and non-alcoholic beverages (1.2 percent compared to 0.9 percent), mainly fruits.

Annual core inflation, which excludes volatile items such as unprocessed food and energy, remained at 1 percent, the same as in September and the highest level in a year.

On a monthly basis, consumer prices jumped 1 percent after a flat reading in September. It is the highest monthly rate in six months, mainly boosted by cost of clothing and footwear (11.2 percent) as the new winter season started; food and non-alcoholic beverages (1.5 percent); and housing (1.1 percent).

The EU-harmonised index increased 0.2 percent over a year earlier, the same as in September, and rose 0.7 percent from the previous month (vs 0.4 percent in September).


Thursday October 31 2019
Spain GDP Growth Holds Steady at 3-Year Low
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Spain's economy expanded 0.4 percent on quarter in the three months to September 2019, unchanged from the previous period's three-year low and in line with market expectations, a preliminary estimate showed.

Household consumption surged 1.1 percent in the third quarter, after being unchanged in the previous period; and fixed investment jumped 1.3 percent, recovering from a 0.2 percent contraction., boosted by investment in machinery, equipment, weapon system and biological resources (7.0 percent vs -1.7 percent) and intellectual property products (1.4 percent vs 0.9 percent), while investment in housing, other buildings and constructions slumped (-2.6 percent vs 0.5 percent). In addition, government spending increased 0.9 percent, faster than 0.4 percent in the second quarter.

Meanwhile, net external demand contributed negatively to the GDP growth as exports fell 0.8 percent (vs 1.7 percent in Q2) and imports rose 1.3 percent (vs 0.9 percent in Q2).

On an annual basis the economy grew 2.0 percent, the same as in the previous quarter, and above forecasts of 1.9 percent.


Wednesday October 30 2019
Spain October Inflation Rate Steady at 3-Year Low
INE | Stefanie Moya | stefanie.moya@tradingeconomics.com

The annual inflation rate in Spain was at 0.1 percent in October 2019, unchanged from the previous month and above market expectations of a flat reading, a preliminary estimate showed. It remained the lowest inflation rate since September 2016, amid a slowdown in cost of gas & fuels while electricity prices rose further.

On a monthly basis, consumer prices are expected to advance 1 percent in October, following a flat reading in September. 

The EU-harmonised index should rise 0.2 percent year-on-year, unchanged from the prior month and in line with market forecasts. Compared to the previous month, the index is likely to increase 0.6 percent, after a 0.4 percent gain in September and matching expectations.