For Spanish companies, the end of the first quarter was a test. They are beginning to notice how runaway inflation, which has been higher in Spain for months compared to the euro area, is starting to impact their foreign competitiveness.
The complicated scenario is made clear by turnover statistics. According to data published by the INE on Thursday, the company turnover fell 0.9% in March. This coincides with the earlier outbreak of war in Ukraine (at February’s end), which notably exacerbated the energy crisis. This is the first monthly decline since April 2021. This is the largest monthly drop since April 2021, during the health crisis. It was 1.4%.
This marks the end of a 10-month-long streak of sales improvement, which ended in February with sales increases of 2.6% in January and 2.1% in February. Contrary to these positive numbers, the March drop in sales was 6.1% lower than February’s.
The decline in retail sales was also negative with a 3.9% decrease compared to the previous months. The INE analyzed four sectors, including services, which were sold 0.6% less and, most importantly, the supply of electric, which saw an 8.6% increase in its turnover compared to February due to the full escalation in energy prices.
The turnover of all companies that were analyzed was 23.2% higher when compared to the previous year (March 2022-March 2002). According to the INE’s Business Turnover Index (ICNE), this rise is nearly six points less than February’s growth rate.
Positive interannual rates were seen in all sectors, with the exception of energy and water supply which saw their sales increase by more than two (128.9%), then followed by services which saw a 22.5% increase in turnover compared to last year. Commerce and industry, on the other hand, sold 16.2% more than March 2021 and 13.2% respectively.
Adjusted to account for calendar and seasonal effects, the company turnover rose by 22.1% in February, which is 6.3 points less than February.
The corrected series saw the largest increases in energy and water supply (13.2%) and services (22.2%) respectively. Commerce (14.4%) followed by industry (11.1%) were the next highest. .
