monthly turnover declines across sectors
The turnover for many companies fell by 4.9 percent in June when compared with the same month in 2022. This marks the largest annual drop since February 2021, according to the Turnover Index measured by the National Institute of Statistics (INE) and released this week. The index provides a snapshot of how different sectors performed, showing where growth slowed and where activity remained firm.
Within the sector mix, most chains of companies saw negative annual changes in June, following a stretch of 25 straight months of growth. Only services managed to post a positive year-over-year result during this period.
Across all sectors, every area except services reported negative year-over-year changes in June, with a total sales gain of 3.8 percent versus the prior year. The sharpest declines were in electricity and water supplies, which dropped 27.3 percent. Industry also weakened, with a 7 percent decrease from June 2022, while trade fell by 2.9 percent in the same comparison.
After adjusting for seasonal and calendar effects, company turnover was down 5.8 percent in June year over year. This rate is three percentage points lower than the figure seen in May. In the adjusted series, the most pronounced year-over-year declines occurred in electricity and water supply (-26.4%), followed by industry (-8.7%) and trade (-3.2%). Conversely, services posted a 3.9 percent rise in turnover compared with the previous year. (Source: INE, National Institute of Statistics, ICNE report)
monthly downturn context
When looking at June through May in the adjusted figures, business invoicing decreased by 1.2 percent, while the month-to-month change from May to June was a 0.3 percent uptick. The sixth month of the year showed that only electricity and water supplies grew, rising by 0.5 percent on a monthly basis. Services, by contrast, showed little to no change from May. Meanwhile, the industrial sector recorded a 2.8 percent decrease in turnover from May to June, and the trade sector reported a 1.7 percent drop in invoicing in June compared with May. (Source: INE, ICNE)