Wednesday September 13 2017
Spain Inflation Rate Confirmed at 3-Month High of 1.6%
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Spain increased 1.6 percent year-on-year in August of 2017, following a 1.5 percent rise in the previous month and in line with the preliminary estimate. It is the highest inflation rate in three months, mainly due to rising transport prices, namely fuel.

Year-on-year, consumer prices rose faster for: transport (3.3 percent vs 2.4 percent in July), namely fuels (7 percent vs 3.7 percent); housing and utilities (3.3 percent vs 3.2 percent); hotels, cafes and restaurants (2.3 percent vs 2.1 percent) and clothing and footwear (0.5 percent vs 0.4 percent).

On the other hand, cost was unchanged for food and non-alcoholic beverages (from 0.1 percent) while slowed for recreation and culture (0.7 percent vs 1.2 percent); miscellaneous goods and services (0.6 percent vs 1 percent) and communication (0.7 percent vs 1.5 percent). Also, prices fell less for furniture and household equipment (-0.5 percent vs -0.6 percent).

Annual core inflation, which strips out volatile food and energy prices, was 1.2 percent, lower than 1.4 percent a month earlier.

On a monthly basis, consumer prices went up 0.2 percent, compared to a 0.7 percent decrease in the preceding month.

The EU-harmonised index rose 2.0 percent year-on-year, higher than 1.7 percent in July. The monthly rate edged up 0.2 percent compared to a 1.2 percent drop in July.





Wednesday August 30 2017
Spain Inflation Rate Picks Up to 1.6% in August
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Spain are expected to increase 1.6 percent year-on-year in August 2017, following a 1.5 percent rise in the previous month and below market expectations of 1.7 percent. It is the highest inflation rate in three months, mainly due to a surge in fuel prices, namely diesel and gasoline.

On a monthly basis, consumer prices are expected to went up 0.2 percent, compared to a 0.7 percent decrease in the preceding month.

The EU-harmonised index is expected to rise 2 percent year-on-year in August,  higher than 1.7 percent in July and beating expectations of a 1.8 percent gain. Compared to the previous month, the index is expected to advance 0.2 percent.


Thursday August 24 2017
Spain GDP Growth Confirmed at Near 2-Year High in Q2
INE | Joana Taborda | joana.taborda@tradingeconomics.com

The Spanish economy advanced 0.9 percent on quarter in the three months to June of 2017, higher than 0.8 percent in the previous period and matching preliminary estimates. It is the strongest expansion in nearly two years, mainly due to higher consumer spending while investment slowed.

Household consumption increased 0.7 percent, faster than a 0.4 percent gain in the previous period. In contrast, public spending edged up 0.2 percent, below 0.8 percent in the previous period. Gross fixed capital formation  slowed (0.8 percent compared to 2.1 percent in the previous period), mainly due to lower investment in equipment goods (0.5 percent compared to 3.5 percent) and intellectual property prducts (0.5 prercent compared to 2 percent) while investment in construction rose 1.1 percent, the same as in the previous period. Exports went up 0.7 percent, below 3 percent in the previous period while imports fell 0.2 percent, after a 3.1 percent rise. 

On the production side, the services sector rose more (0.8 percent compared to 0.7 percent in the previous period), namely internal trade, transport and accomodation (0.9 percent compared to 0.5 percent) and professional activities (2.1 percent compared to 1.2 percent). The manufacturing sector also expanded at a faster pace (0.8 percent compared to 0.7 percent). On the other hand, construction slowed (1.5 percent compared to 2.9 percent) and agriculture shrank 2.6 percent, following a 2.5 percent rise. 

Year-on-year, the economy advanced 3.1 percent, higher than 3 percent in the previous quarter and matching preliminary estimates. 




Tuesday August 22 2017
Spanish Trade Deficit Narrows 7.2% in June
Mineco | Joana Ferreira | joana.ferreira@tradingeconomics.com

Spain's trade deficit narrowed by 7.2 percent to EUR 1.26 billion in June 2017 from EUR 1.36 billion in the corresponding month a year earlier. Exports increased 5.7 percent year-on-year to EUR 23.98 billion while imports rose at a slower 5 percent to EUR 25.24 billion.

Exports increased 5.7 percent to EUR 23.98 billion in June from EUR 22.68 billion a year earlier. The main contributions to export growth came from energy products (1.7 points), food, beverages and tobacco (1.5 points), chemical products (0.9 points) and consumer goods (0.8 points). The only sector with a significant negative contribution was vehicles (-0.7 points). Exports to the EU rose 6.1 percent year-on-year, as sales to the euro zone increased 6.7 percent and those to the rest of the European Union went up 4.1 percent. Among major trading partners, exports grew to the Netherlands (24.1 percent), France (8.6 percent), Italy (5.1 percent) and Germany (4.9 percent), but fell to the United Kingdom (-4.4 percent). Outside the EU, increases in exports were recorded to Australia (31 percent), Canada (24.1 percent), China (22.3 percent) and Argentina (15.4 percent), while sales declined to Algeria (-15.3 percent), Japan (-7.8 percent) and the United States (-7.2 percent).

Imports rose 5 percent to EUR 25.24 billion in June from EUR 24.04 billion a year earlier.

Considering the first half of the year, the trade deficit jumped 40.7 percent to EUR 11.09 billion, as imports went up 11.8 percent to an all-time high of EUR 151.96 billion and exports increased 10 percent to EUR 140.88 billion, also a new record high for that period. 




Friday August 11 2017
Spain Inflation Rate Confirmed at 1.5% in July
INE | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Spain increased 1.5 percent year-on-year in July 2017, the same pace as in June and in line with preliminary estimates. It remains the lowest inflation rate since November last year, mainly as cost eased for food and housing while rose faster for transport. On a monthly basis, consumer prices went down 0.7 percent.

Year-on-year, consumer prices advanced less for: food and non-alcoholic beverages (0.1 percent vs 0.8 percent in June); housing and utilities (3.2 percent vs 3.6 percent); hotels, cafes and restaurants (2.1 percent vs 2.2 percent); recreation and culture (1.2 percent vs 1.4 percent); miscellaneous goods and services (1 percent vs 1.1 percent) and communication (1.5 percent vs 2.1 percent). Also, prices of furniture and household equipment declined further (-0.6 percent vs -0.4 percent).

In contrast, cost rose faster for transport (2.4 percent vs 1.8 percent) and clothing and footwear (0.4 percent vs 0.2 percent).

Annual core inflation, which strips out volatile food and energy prices, was 1.4 percent, higher than 1.2 percent a month earlier.

On a monthly basis, consumer prices went down 0.7 percent.

The EU-harmonised index rose 1.7 percent year-on-year, higher than 1.6 percent in June. The monthly rate edged down 1.2 percent compared to a 0.1 percent increase in June.


Friday July 28 2017
Spanish Inflation Rate Flat at 1.5% in July
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Spanish annual inflation rate came in at 1.5 percent in July 2017, unchanged from the previous month's seven month low and in line with market expectations, the preliminary figure showed. Cost of food and non-alcoholic beverages was flat from the previous year while fuel prices dropped.

On a monthly basis, consumer prices are expected to fall 0.7 percent after showing no gain in June. 

The EU-harmonized index is expected to rise by 1.7 percent compared to a year earlier, following a 1.6 percent increase in June and above market expectations of 1.5 percent. Compared with June 2017, the index is expected to fall by 1.2 percent after rising by 0.1 percent in the previous month.


Friday July 28 2017
Spanish Q2 GDP Growth at Near 2-Year High
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

The Spanish economy advanced by 0.9 percent on quarter in the three months to June 2017, in line with market expectations and following a 0.8 percent expansion in the previous period, the preliminary estimate showed.

It was the 15th straight quarter of growth and the strongest rate of expansion since the third quarter of 2015, after a five-year financial crisis that ended in 2013.

On an annual basis, the economy grew by 3.1 percent in the second quarter, also in line with market consensus and following a 3 percent expansion in the previous period.


Thursday July 27 2017
Spain Jobless Rate Drops To 8-1/2-year Low
INE | Joana Taborda | joana.taborda@tradingeconomics.com

The unemployment rate in Spain fell to 17.22 percent in the second quarter of 2017 from 18.75 percent in the previous period. It is the lowest jobless rate since the last quarter of 2008, below market expectations of 17.8 percent. Yet, unemployment has been falling since 2013 when it hit a record high of 27 percent after a real estate and construction crisis that started in 2008 led to a recession. However, the jobless rate still remains at double digits and higher than its pre-crisis level. Spain has the second highest unemployment rate in the EU after Greece.

The number of jobless people fell by 340.7 thousand to 3.9143 million, with declines seen in all sectors. Unemployment in services went down by 144 thousnad, following a 104.8 thousand rise in the previous quarter. By region, the largest decreases occurred in Catalonia (-79.2 thousand), Andalusia (-72.2 thousand) and Madrid (-38.9 thousand).

The number of employed increased by 375 thousand to 18.8133 million, mainly due to rises in services (+272.4 thousand), industry (+65.7 thousand) and construction (+52.1 thousand). In contrast, employment fell in agriculture (-15.2 thousand). By region, the largest increases were seen in Catalonia (72.6 thousand), Balearic Islands (65 thousand) and Andalusia (53.5 thousand). Employment increased in by 345.1 thousand in the private sector and by 29.9 thousand in the public. 

The number of active people increased by 34.3 thousand to 22.7276 million, bringing the labour force participation rate up to 58.84 percent from 58.78 percent.




Friday July 21 2017
Spanish Trade Deficit Widens 52.1% In May
Mineco | Joana Ferreira | joana.ferreira@tradingeconomics.com

Spain's trade deficit widened sharply by 52.1 percent to EUR 1.43 billion in May 2017 from EUR 0.94 billion in the corresponding month a year earlier. Exports increased 15.2 percent year-on-year to EUR 25.36 billion while imports rose at a faster 16.7 percent to EUR 26.79 billion. In the first five months of the year, the trade deficit jumped 50.7 percent to EUR 9.83 billion, driven by a 13.3 percent increase in imports while exports rose 10.9 percent to a new record high for that period.

Exports increased 15.2 percent to EUR 25.36 billion from EUR 22.01 billion a year earlier. The main contributions to export growth came from the capital goods sector (contribution of 4.3 points), energy products (2.7 points), chemicals (2 points) and non-chemical semi-manufactures (1.6 points). The only sector that contributed negatively was other goods (-0.1 points). Exports to the EU rose 16.2 percent year-on-year, as sales to the euro zone increased 15.9 percent and those to the rest of the European Union went up 17.5 percent. Among major trading partners, exports grew to Germany (19.1 percent), the United Kingdom (17.5 percent), Italy (18 percent) and France (13.1 percent).

Imports rose 16.7 percent to EUR 26.79 billion from EUR 22.96 billion a year earlier.

With the European Union countries, the trade balance showed a surplus of EUR 2.05 billion, compared with a EUR 0.92 billion surplus in May 2016.

Considering the first five months of the year, the trade deficit jumped 50.7 percent to EUR 9.83 billion, as imports went up 13.3 percent to EUR 126.73 billion and exports increased 10.9 percent to EUR 116.90 billion, a new record high for that period. 


Thursday July 13 2017
Spain Inflation Rate Confirmed At 1.5% In June
INE | Yekaterina Guchshina | yekaterina@tradingeconomics.com

Consumer prices in Spain increased by 1.5 percent year-on-year in June 2017, following 1.9 percent gain in May and in line with preliminary estimates. It was the lowest inflation rate since November last year, as prices rose at a slower pace for transport, food, and housing. On a monthly basis, consumer prices were flat.

Year-on-year, consumer prices advanced slower for transport (1.8 percent vs 3.4 percent), food and non-alcoholic beverages (0.8 percent from 1.1 percent) and housing (3.6 percent from 5.4 percent). In contrast, inflation accelerated for recreation and culture (1.4 percent vs 1.2 percent) and hotels, cafes and restaurants (2.2 percent vs 1.8 percent).

Annual core inflation, which strips out volatile food and energy prices, was 1.2 percent, higher than 1 percent a month earlier.

On a monthly basis, consumer prices were flat.

The EU-harmonised index rose 1.6 percent year-on-year, lower than 2 percent in May. The monthly rate edged up 0.1 percent compared to flat reading in May.