General Situation: Energy-Driven Growth and Sector Turnover in mid-year

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Several Spanish utilities focused on supplying electricity, water, sanitation, and waste management reported a standout year. The sector’s business volume surged by an average of 106% from January through June versus the same period a year earlier. Activity more than doubled in the first half. Data from the National Institute of Statistics indicates these firms have enjoyed rising revenues since December 2020, with a sustained climb beginning in October 2021 and peaking earlier this year.

At the same time, the onset of Russia’s offensive against Ukraine added layers of uncertainty to an energy landscape already stretched by post-pandemic recovery. The response underscored how much more energy was required as activity resumed and demand intensified.

In June of the previous year, the turnover index for this sector stood at 115; by last June, it approached 220. This indicator consolidates information on industry turnover, services activity, and retail performance, drawing on administrative records such as VAT declarations by these firms. Utilities posted a 42% gain in June of the prior year and now exceed 86% growth. On average, the first half of this year saw turnover rise from 23% to 106% year over year.

According to the INE x-ray that tracks non-financial sectors, the general picture is favorable, though the pace of gains is not uniform. Mining and manufacturing, for example, increased their share by 33% in June compared with June 2021; non-financial market services rose 28%; and retail activity grew by 21.4%.

general situation

Overall, the energy-driven revenue gap helped push the combined turnover of these companies up by 30.5% in mid-year versus the same period last year. The indicator, adjusted to remove seasonal and calendar effects, marks the sixteenth consecutive monthly rise, though it dipped slightly relative to May by about three percentage points.

Across the board, company turnover was higher when comparing month to month. May saw a modest 1.1% increase, while June posted a stronger 1.5% rise. Energy activity remained a key driver, and in the mining and manufacturing sectors, revenue growth tended to be twice as large as in other areas, underscoring the pivotal role of energy demand in broad economic momentum [INE].

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