BBVA Research | At the end of the year, the Spanish economy could register three quarters in a row of 0.4% growth t / t, below the growth observed since the beginning of the recovery (0.7% t / t, on average). In this context there is a stabilization of job creation, a volatile composition of demand and low inflation.
The Spanish economy grew 0.4% in the second quarter, one tenth less than in the previous quarter and also a tenth less than advanced at the end of July. It is the lowest rate of quarterly growth in three years, according to the National Accounts published this Monday by the National Institute for Statistics (INE).
The Consumer Price Index (CPI) in Spain rose 1% in April compared to the previous month and raised the yoy rate by two tenths to 1.5%, its third consecutive increase since February and its highest level since last November, according to the definitive figures published this Tuesday by the National Institute of Statistics (INE), which coincide with those advanced at the end of last month.
Cheaper oil and electricity pushed prices down by 0.3% in August compared to the previous month. In year-on-year terms, prices dropped by 5 basis points or 0.4%.
The Corner | May 4, 2015 | For the past 17 months, operating in the Spanish manufacturing sector has been easier (more output and new orders were registered), thanks to an increasing client demand, according to the last PMI data released by Markit, although the firm’s indicator posted 54.2 in April, down fractionally from the reading of 54.3 in March.
MADRID | February 27th, | The Corner | Negative inflation is likely to be of more concern to German policy makers than it is to their Spanish counterparts today, with low prices being seen as good news for Spanish consumers and the economy as a whole. Elsewhere, attention will focus on Greek GDP, with the possibility that the latest data may underline some of the lingering difficulties between Greece and its EU partners.
MADRID | The Corner | Internal demand is recovering within the euro area, activity is getting back on track and experts believe that companies are about to start investing, hiring more workers and boosting consumption. However, credit flow, the production gap and unemployment are still major challenges. Analysts at Cortal Consors think that Spain and Portugal are the Eurozone countries most at risk of a “prolonged period of low inflation or mild deflation.”