Spanish economy remains “considerable strength” supported by consumption – Daily 26

BANK OF SPAIN

Thursday, October 27, 2016

The economic authority has already published in September, GDP growth in the third quarter would have grown by 0.7% quarter-on-quarter in accordance with its forecasts.

The Bank of Spain has assured that the Spanish economy would have continued showing “remarkable strength” to the end of the third quarter of the year.

The economic authority has already published in September, GDP growth in the third quarter would have grown by 0.7% quarter-on-quarter according to their forecasts.

The report has highlighted that this fortress occurs “despite the presence of some sources of uncertainty, which, from the point of view of the outside context, would have been related, among other factors, with the evolution of the process of exit of the Uk from the EU, and, at the domestic level, with the prolongation of the situation of the interim Government of the nation.”

“The growth of the product would have continued based, fundamentally, on the dynamism of private demand national”, has targeted the agency.

In particular, ·the private consumption would have maintained a vigorous growth, in a context of continuation of the process of sustained employment creation and the maintenance of favourable financial terms” – has underlined the analysis.

in Addition, the quantitative indicators showed, with one exception, a modest acceleration over the third quarter, in terms of the rate of year-on-year, as was the case with registrations of private cars and domestic sales of goods and services consumption of large companies, referring to September and August, respectively.

The investment maintains the positive trend
“The indicators relating to the investment in equipment showed, in general, a tonic positive in the third quarter of 2016,” explained the Bank of Spain.

Between the qualitative, the portfolio of orders of capital goods and the PMI of this type of goods accelerated in the whole of the third quarter. In terms of the quantitative indicators, the production of capital goods and the registrations of freight vehicles also gained dynamism with data up to August and September, respectively, while imports of this type of goods were recovered in August, after the parentheses bassist of the preceding month.

The job market continues its recovery
“In September, continued the positive tone of the employment indicators, with an interannual increase of affiliations to the Social Security of 3%, similar to that observed in the previous month,” noted the study.

The growth monthly, calculated on the series desestacionalizada expanded one tenth, to 0.3%. By productive, this increased, widespread among non-agricultural activities, was somewhat higher in construction and in services.

in Addition, for the second consecutive month, the pace of decline year-on-year of the registered unemployed in the State Employment Public Service (SEPE) stood at 9.1%, the biggest fall since the beginning of this expansionary cycle.

finally, on the indicators that approximate the inflationary pressures in the future, the Bank of Spain stresses that in the period July-August the prices of industrial products non-energy, both imported as domestic production resumed “timidly” the trend of slowing to a halt in the second quarter of the year. (Source: Expansion)