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Industry and services register their worst sales data in more than two years in April

Date: February 28, 2024 Time: 18:59:44

The Bank of Spain (BdE) this week raised its growth forecast for this year by seven tenths to 2.3%, although it warned that there are already signs that a “cooling off” of the economy is taking place. The data made public this Wednesday by the National Statistics Institute (INE) point in that direction, since industry and services registered their worst data in more than two years that month. Both in Spain and in the rest of the sectors of Europe, these two have already been showing a two-speed recovery after Covid, the war in Ukraine and the inflationary and energy crises from which the secondary sector has come out worse off.

In the fourth month of the year, specifically, the turnover of the industry fell by 8.1% in January in relation to the same month last year, in what represents the largest decrease in sales since 2021 and a change of direction after accumulating twenty-five consecutive months of progress. Without taking seasonal and calendar effects into account, industrial turnover fell by 5.1% year-on-year.

In the accumulated year, that is, between January and April, the turnover of the industry increased by an average of 5.1%, although the increase is much stronger in the case of the production of motor vehicles, which shoot 20.9%. In the fourth month of the year, sales related to energy (30.3%) and intermediate goods (13.9%) suffered a sharp fall, while those of capital goods (5.5% more) and consumption (0.5%).

Billing fell in all markets, especially in the Eurozone (Spain’s main trading partner), where it fell by 9.5% after the region confirmed that it entered a technical recession in the first quarter of the year. It was also worse in the domestic market (it fell 7.2%). On the positive side, industrial revenues in the Canary Islands, Navarra and Madrid increased by 7.6%, 3.3% and 3.2%, respectively. While they fell more strongly in Murcia (20.5%), Andalusia (17.3%) and Asturias (14.8%).

Stagnation in the billing of services despite tourism

Regarding the service sector, its billing probably stagnated, increasing by 0.8% in April compared to the same month a year ago, nine points less than in March. The tertiary sector chains twenty-six consecutive months on the rise, being that of April the lowest of that entire period.

Trade continues to be in the doldrums and invoiced 2.2% less than in the same month of 2022, due to the fact that the wholesaler reduced its sales by 8% in year-on-year terms. Meanwhile, the sale and repair of vehicles and motorcycles billed 10.4% more compared to April of a year earlier, and retail trade, 8.8% more.

While other services increased their sales by 7% year-on-year in April driven by administrative (+12.4%), professional activities (+10.9%) and hospitality, which billed 10.7% more. They also increased their income from information and communications (7.8%), but not transport and storage, which reduced them by 0.2%.

Within the hotel industry, accommodation services increased their sales by 12.3% thanks to an Easter week in which very positive figures for tourism appeared, while food and beverage services billed 10% in relation to April of one year. before. By activity, the greatest increases in sales were registered by travel agencies and tour operators (+38.5%) and air transport, which increased by 27.8%.

In monthly terms (April over March) and in seasonally and calendar corrected data, the service sector deteriorated in the fourth month of the year a monthly decrease in sales of 0.1%, thus chaining two consecutive months down (-0.3 % in March). For the twenty-fifth consecutive month, employment increased in the tertiary sector. It did so at an interannual rate of 2.1%, a less pronounced rise than in previous months. The pull of tourism allowed the Balearic Islands to be the community that increased job creation the most, with an interannual rise of 7.3%, and also the one that increased sales the most, 15.8% in the interannual rate.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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