Friday December 14 2018
Spanish November Inflation Rate Confirmed at 7-Month Low
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Spain's annual inflation slowed to 1.7 percent in November 2018 from 2.3 percent in the previous month and in line with the preliminary estimate. This was the lowest rate since April.

A slowdown was seen in price changes of food & non-alcoholic beverages (1.4 percent vs 1.7 percent in October); transport (3.3 percent vs 5.7 percent); housing & utilities (2.8 percent vs 4 percent); and clothing & footwear (0.9 percent vs 1 percent). In addition, prices of recreation & culture dropped 0.5 percent (vs flat reading in October). On the other hand, inflation picked up for both restaurants & hotels (2.1 percent vs 1.9 percent) and miscellaneous goods and services (1.2 percent vs 1.1 percent).

Annual core inflation, which excludes volatile items such as food and energy, eased to 0.9 percent in November from 1 percent in October.

On a monthly basis, consumer prices fell 0.1 percent in November, after a 0.9 percent jump in October and also matching earlier estimates.

The harmonized index of consumer prices advanced 1.7 percent year-on-year (vs 2.3 percent in October), and dropped by 0.2 percent from the previous month (vs 0.7 percent in October).




Thursday November 29 2018
Spanish Inflation Rate Drops to 1.7% in November
INE | Gabriela Costa | gabriela.costa@tradingeconomics.com

The annual inflation rate in Spain is expected to decline to 1.7 percent in November of 2018, easing from a 2.3 percent rise in the previous month and below market expectations of a 2 percent gain, the preliminary estimates showed. It was the lowest inflation since April, due to lower prices of eletricity and gas.

On a monthly basis, consumer prices are set to drop 0.1 percent, from a 0.9 percent gain in September and well below market expectations of a 0.4 percent increase.

The EU-harmonised index should increase 1.7 percent year-on-year in November, easing from a 2.3 percent rise in the previous month and slightly below market expectations of a 2.0 percent gain. Compared to the previous month, the index is expected to decrease 0.2 percent, following a 0.7 percent rise in September and against market consensus of a 0.3 percent gain.


Wednesday November 21 2018
Spain Trade Gap Widens in September as Exports Tumble
Ministerio de Industria, Comercio y Turismo | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The Spanish trade deficit increased to EUR 3.30 billion in September 2018 from EUR 2.15 billion in the same month of the previous year. Imports rose only 0.3 percent, as higher purchases of chemical products and energy products were not enough to offset declines in those for equipment goods and automotive products. Meantime, exports tumbled 4.6 percent, mainly dragged down by lower sales of equipment goods and automotive products.

Imports rose 0.3 percent to EUR 25.47 billion in September of 2018 from EUR 25.41 billion a year ago, primarily driven by purchases of chemical products (11.2 percent), mostly medicines (23.8 percent); energy products (15.7 percent), namely oil & by-products (19.2 percent) and non-chemical semi-manufactured products (6.1 percent), such as iron & steel (7.8 percent) and non-ferrous metals (8.8 percent). In contrast, imports declined for equipment goods (-4.3 percent), including machinery (-4.6 percent) and aircraft (-71.9 percent); consumption goods (-1.3 percent), of which textiles (-0.3 percent) and toys (-11.7 percent); automotive products (-12.4 percent), namely auto parts (-13.6 percent) and cars & motorbikes (-11.2 percent); food, beverages & tobacco (-5.5 percent) and raw materials (-11.1 percent).

Among major trade partners, imports grew from the UK (14.4 percent), Turkey (17.3 percent), China (4.2 percent) and Saudi Arabia (44.9 percent); but fell from Germany (-3.5 percent), France (-5.1 percent), the Netherlands (-10.5 percent), Belgium (-7.4 percent), Russia (-32.2 percent) and the US (-11.2 percent) and were flat from Italy. 

Exports fell 4.6 percent to EUR 22.18 billion from EUR 23.26 billion in the same month a year earlier. Sales declined for capital goods (-10.1 percent), mainly transport equipment (-40.4 percent) as aircraft (-58.4 percent) and ships (-49.2 percent); automotive products (-15.1 percent), primarily cars and motorbikes (-21.3 percent); food, beverages & tobacco (-3.7 percent); non-chemical semi-manufactured products (-1.3 percent), mostly non-ferrous metals (-8.2 percent) and consumption goods (-7.2 percent), such as textiles (-11.3 percent). Meanwhile, higher shipments were registered for chemical products (1.7 percent), energy products (13.0 percent), of which oil & by products (13.1 percent) and raw materials (13.2 percent). 

Among major trade partners, exports decreased mostly to Germany (-19.4 percent), Italy (-6.8 percent), the UK (-8.3 percent), Portugal (-2.4 percent), Belgium (-11.0 percent), Switzerland (-6.0 percent), Turkey (-50.2 percent), the US (-1.4 percent) and Japan (-9.9 percent). 

Considering the January to September period of 2018, the trade deficit widened by 30.3 percent to EUR 24.19 billion, as imports advanced 5.5 percent to EUR 236.4 billion and exports rose at a softer 3.2 percent to EUR 212.2 billion.




Wednesday November 14 2018
Spain October Annual Inflation Rate Confirmed at 2.3%
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The annual inflation rate in Spain stood at 2.3 percent in October 2018, unchanged from the previous month, matching an earlier estimate and market expectations. Slower prices for housing offset rising cost of transport. Also, inflation was steady for food.

Year-on-year, inflation eased mainly for housing (4.0 percent vs 5.3 percent in September), as a slowdown in prices for electricity (3.8 percent vs 13.7 percent) offset higher cost of gas (10.8 percent vs 7.4 percent. Meantime, inflation remained steady for food & non-alcoholic beverages (1.7 percent), restaurants & hotels (1.9 percent) and clothing & footwear (1.0 percent). In contrast, prices rose faster for transport (5.7 percent vs 5.0 percent), mainly fuels and lubricants (13.2 percent vs 12.3 percent); miscellaneous goods & services (1.1 percent vs 1.0 percent) and health (0.4 percent vs 0.1 percent).

Annual core inflation, which excludes volatile items such as food and energy, went up to 1.0 percent in October from 0.8 percent in September.

On a monthly basis, consumer prices increased 0.9 percent from 0.2 percent in September, well above the preliminary estimate of 0.2 percent and matching market consensus. Main positive contributions came from cost of fruits (7.0 percent), vegetables (3.3 percent), fuels and lubricants (1.5 percent) and clothing (12.7 percent).

The harmonized index of consumer prices advanced 2.3 percent year-on-year (vs 2.3 percent in September), and by 0.7 percent from the previous month (vs 0.6 percent in September).


Wednesday October 31 2018
Spanish Economy Expands 0.6% in Q3
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Spanish economy grew by 0.6 percent on quarter in the three months to September 2018, the same pace as in the previous period and in line with market expectations, a preliminary estimate showed. Household consumption and fixed investment grew at a solid pace while net external demand contributed negatively to the GDP growth.

It was the 20th straight quarter of solid growth after a five-year financial crisis that ended in 2013.

According to preliminary estimates, household consumption growth picked up to 0.6 percent in the third quarter from 0.1 percent in the previous period; and government spending expansion also accelerated to 0.8 percent from 0.1 percent. Meanwhile, gross fixed capital formation increased 1 percent in the three months to September after a 3.5 percent rise in the previous period, as investment in tangible fixed assets slowed (1.2 percent vs 4 percent in Q2), in particular construction (0.5 percent vs 2.2 percent), and machinery, equipment, weapon system and biological resources (2.2 percent vs 6.5 percent). Investment in intellectual property products dropped 0.2 percent after a 0.6 percent growth in Q2.

Exports slumped 1.8 percent (vs 0.2 percent in Q2) and imports fell at a softer 1.2 percent (vs 1 percent in Q2).

On the production side, services output growth picked up to 0.9 percent in the third quarter (vs 0.5 percent in Q2) while construction expansion eased to 1.4 percent (vs 1.8 percent in Q2). By contrast, industry output shrank 0.5 percent (vs 0.7 percent in Q2) due to a decline in manufacturing (-0.4 percent vs 1 percent in Q2).

On an annual basis, the GDP rose by 2.5 percent in the third quarter, unchanged from the previous period's three-and-a-half-year low and in line with market consensus.




Tuesday October 30 2018
Spanish Inflation Rate Steady at 2.3% in October
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The annual inflation rate in Spain is expected to stood at 2.3 percent in October of 2018, unchanged from the previous month and matching market expectations, the preliminary estimates showed. Higher prices for gas should be offset by slowing prices of electricity.

On a monthly basis, consumer prices are set to rise 0.2 percent, the same pace as in September and well below market expectations of a 0.9 percent increase.

The EU-harmonised index went up should increase 2.3 percent year-on-year in October, the same pace as in the previous month and slightly above market expectations of a 2.2 percent gain. Compared to the previous month, the index is expected to decrease 0.8 percent, following a 0.6 percent rise in September and against market consensus of a 0.6 percent gain.


Thursday October 25 2018
Spain Jobless Rate Lowest Since 2008
INE | Stefanie Moya | stefanie.moya@tradingeconomics.com

The unemployment rate in Spain declined to 14.55 in the third quarter of 2018 from 15.28 percent in the previous period and below market expectations of 14.9 percent. It was the lowest jobless rate since the last quarter of 2008. Among regions, the highest rates were recorded in Ceuta (30.8 percent), Melilla (24 percent) Andalucía (22.9 percent) and Extremadura (21.7 percent) and the lowest in Balears Illes (7.2 percent), Cantabria (9 percent) and País Vasco (9.4 percent). In Catalonia, jobless rate was 10.6 percent and in Madrid 11.9 percent.

The number of unemployed people dropped by 164,100 to 3.326 million, with the highest declines seen in Catalonia (-28,300), Balears Illes (-24,600) and Castilla-La Mancha (-23,800). By age, most decreases were seen for those aged 25-54 (-121,600); those with more than 55 (-48,600) and those aged 16-24 (-1,900). Meanwhile, unemployment among people aged 20-24 rose by 8,000.

Employment went up by 183,900 thousand to 19.528 million. Job gains were seen in services (+210,200), construction (+24,900) and industry (+2,800) while the agricultural sector lost 54,000 jobs. Jobs in the private sector went up by 134,200 to 16.360 million and the public one by 49,7 00 to 3.168 million. Among regions, Illes Balears (+47,500), Catalonia (+33,500) and both Canarias and Castilla-La Mancha (+22,700) added the most jobs. 

The number of active people increased by 19,800 thousand to 22.854 million.




Tuesday October 23 2018
Spain Trade Deficit Narrows in August
Mineco | Stefanie Moya | stefanie.moya@tradingeconomics.com

The Spanish trade deficit narrowed to EUR 3.06 billion in August 2018 from EUR 3.23 billion in the same month of the previous year. Exports rose 7.7 percent year-on-year to EUR 20.7 billion while imports increased at a softer 5.8 percent to EUR 23.8 billion.

Exports grew 7.7 percent year-on-year to EUR 20.71 billion in August 2018 from EUR 19.24 billion a year earlier, mostly due to higher sales of energy products (32.0 percent); non-chemical semi-manufactured products (22.2 percent); other goods (20.2 percent); chemicals (7.0 percent); food, beverages and tobacco (6.9 percent); vehicle parts & accessories (6.0 percent) and consumption goods (4.8 percent). On the other hand, exports dropped for equipment goods (-3.9 percent); raw materials (-3.1 percent).

Among major trade partners, exports advanced mainly from Italy (24.6 percent), the UK (15.1 percent), Portugal (14.2 percent), France (6.4 percent) and the US (1.8 percent).

Imports went up 5.8 percent to EUR 23.77 billion from EUR 22.46 in the same month a year ago, driven by purchases of energy products (44.6 percent); chemicals (11.8 percent); non-chemical semi-manufactured products (9.6 percent); other goods (12.2 percent) and consumption goods (3.2 percent). Meanwhile, purchases fell for equipment goods (-7.4 percent); vehicles (-6.9 percent); raw materials (-5.5 percent) and food , beverages and tobacco (-4.3 percent).

Among major trade partners, imports rose mostly from Italy (19.9 percent), the UK (16.2 percent), Portugal (5.3 percent), China (4.1 percent) and France (1.8 percent).

Considering the January to July period of 2018, the trade deficit decreased by 27.3 percent from the prior year to EUR 20.89 billion, as imports advanced 6.1 percent to EUR 210.88 billion and exports increased 4.2 percent to EUR 189.99 billion.


Thursday October 11 2018
Spain September Annual Inflation Rate Revised Up to 2.3%
INE | Stefanie Moya | stefanie.moya@tradingeconomics.com

The annual inflation rate in Spain increased to 2.3 percent in September of 2018 from 2.2 percent in August, higher than a preliminary estimate of 2.2 percent and above market expectations of a 2.2 percent gain. It was the highest inflation rate since June, mainly due to cost of housing.

Year-on-year, cost rose faster for housing (5.3 percent compared to 4.3 percent in August), mostly due to higher prices of electricity; restaurants & hotels (1.9 percent compared to 1.8 percent); clothing & footwear (1.0 percent compared to 0.9 percent); health (0.1 percent compared to a flat reading) and education (1.0 percent compared to 0.8 percent). Also, cost of recreation & culture fell at a softer pace (-1.0 percent compared to -1.1 percent).

On the other hand, prices eased for food & non-alcoholic beverages (1.7 percent compared to 2.0 percent), namely fruits and legumes and vegetables; transport (5.0 percent compared to 5.2 percent) and furnishings (0.2 percent compared to 0.3 percent). Additionally, inflation was steady for  miscellaneous goods & services (at 1.0 percent, the same as in August) and communications (at 2.6 percent).

Annual core inflation, which excludes volatile items such as food and energy, remained unchanged at 0.8 percent in September, the same as in the prior month.

On a monthly basis, consumer prices went up 0.2 percent from a 0.1 percent rise in August, matching the preliminary estimate and in line with market expectations. Positive contributions came mainly from clothing & footwear (5.3 percent); housing (1.1 percent) and transport (0.4 percent). In contrast, negative contribution came mostly from recreation & culture (-3.1p percent).

The harmonized index of consumer prices advanced 2.3 percent year-on-year, following a 2.2 percent increase in August and rose 0.2 percent from the previous month.


Friday September 28 2018
Spain Q2 GDP Growth Confirmed at 0.6%
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Spanish economy grew by 0.6 percent on quarter in the three months to June 2018, in line with the preliminary estimate and following a downwardly revised 0.6 percent expansion in the previous period.

On the expenditure side, gross fixed capital formation increased 3.5 percent in the second quarter after a 1.1 percent rise in the previous period, boosted by investment in tangible fixed assets (4 percent vs 1.2 percent in Q1), in particular construction (2.2 percent vs 2.1 percent), machinery, equipment, weapon system and biological resources (6.5 percent vs -0.1 percent). In addition, investment in intellectual property products continued to grow (0.6 percent vs 0.9 percent).

On the other hand, household consumption growth eased to a meager 0.1 percent in the three months to June from a strong 0.9 percent in the previous period; and government spending expansion also slowed to 0.1 percent from 0.8 percent. Net external demand contributed negatively to GDP growth as imports jumped 1 percent (vs 1.7 percent in Q1) and exports rose at a softer 0.2 percent (vs 0.6 percent in Q1).

On the production side, output growth slowed for: service sector activities (0.5 percent vs 0.6 percent); construction (1.8 percent vs 2 percent); and agriculture (0.3 percent vs 0.9 percent). Industry output rebounded 0.7 percent in the second quarter (vs -0.3 percent in Q1), driven by manufacturing (1 percent vs -0.3 percent).

On an annual basis, the economy grew by 2.5 percent in the second quarter, below a preliminary estimate of 2.7 percent and the previous period's revised figure of 2.8 percent.