In the latest release from the Tax Office, overall sales for large companies and corporate SMEs rose by 1.4 percent in the second quarter, while employment grew by 3.3 percent. Wages, measured as average gross income, increased by 5.7 percent. The figures come from the Tax Office statistics on Sales, Employment and Salaries at Large Companies and SMEs released this week.
The report notes that sales for these companies expanded by 1.4 percent between March and June, though they remained 2.7 percentage points below the growth reported in the first quarter of the year.
The Tax Office also cautions that the year-on-year rise observed in the first quarter carried a positive bias, partly due to the impact of last year’s transport strike that disrupted activity throughout March.
In this quarter, the opposite trend occurred. Growth lagged behind the 2022 quarter, which included a rebound in April after the strike. Across both quarters, the overall growth rate of 2.8 percent is similar to the rate recorded in the final quarter of 2022.
Indoor sales rose by 1.7 percent in the second quarter, about two points below the first quarter, while the annual increase reached 2.7 percent.
The components of growth showed uneven movement in June. Consumer sales grew more slowly at 1.4 percent compared with 5.3 percent in the prior quarter. Sales of shares continued to rise, at 8.8 percent versus 8.3 percent previously. In the second period, sales of equipment and software saw a slight deceleration, growing 14.8 percent compared with 17.2 percent in the first quarter, while construction-related sales climbed by 3.6 percent.
Exports posted a 0.6 percent increase in the quarter and 3 percent for the year to date. The quarterly rate was nearly five points lower than earlier, primarily due to a decline of 2.9 percent in sales to non-EU destinations for the first time in two years. Sales to the European Union also slowed, easing from 6.2 percent in the first quarter to 4.1 percent.
Job creation slows down
On the employment front, the number of people receiving work income rose by 3.3 percent, about one point below the pace seen in the first quarter. The six-month period still showed a 3.9 percent increase in employment overall.
Meanwhile, the rise in average gross income—salary—remains robust. In the second quarter, the gain was 5.7 percent, roughly in line with the rate seen in the first quarter.
The Tax Office explains that the intensity of the wage increase reflects the gradual inclusion of higher general price levels since mid-2021 in salary reviews. As a result, a sustained further acceleration is not anticipated for the remainder of the year, though notable changes are being monitored. In light of evolving economic conditions, observers will be watching how wage dynamics and price movements interact going forward.
Overall, the latest figures point to steady, albeit uneven, growth across sales, employment, and compensation, with a cautious outlook for the coming quarters as market and policy factors continue to shape business activity. (Tax Office)