Turnover Trends Across Sectors in August
Recent figures from the National Institute of Statistics (INE) show a 6.7% year-over-year drop in company turnover for August, as recorded by the Business Turnover Index. This marks a notable setback when compared with August of the previous year, and the year-over-year decline for the month also rose by nearly three percentage points from the prior month, highlighting a sharper monthly improvement decline than before.
Alongside this monthly dip, August also marks the deepest drop in the company sales chain since February 2021. The latest data reveal a five-month stretch of negative annual performance after a long period of 25 consecutive positive months in turnover.
Across sectors, virtually all areas recorded negative interannual rates for August, with services as the sole exception. In contrast to the broader downturn, total sales in August rose by 2.9% when compared with the same month in 2022, underscoring a mixed picture for the economy.
Supply chains faced pressure in electricity and water utilities, where turnover fell by 38.2%. The industrial sector followed with a 6.2% decrease, while trade experienced a 2.2% reduction in turnover compared with August of the previous year. These shifts reflect the uneven pace of recovery across industry groups and the ongoing challenges that some sectors continue to weather.
After adjusting for seasonal and calendar effects, the aggregate number of active companies also declined by 6.7% on an annual basis in August. This adjustment was 3.1 percentage points lower than the figure observed in July, indicating a modest easing in the rate of decline month over month.
Within the adjusted series, the most significant annual declines were in electricity and water supply, which posted a drop of 38.6%. Industry followed with a 6.3% decrease, and trade saw a 2.1% fall. Services bucked the trend, recording a 3.3% increase in turnover on an annual basis, signaling resilience in that sector amid wider pressures.
Sales Hold Steady in a Slow Pace
Looking at monthly values, both the overall index and the seasonally adjusted figures show a stagnation in turnover compared with the 1.1% rise observed in the prior month. The data also reflect a 3.3% monthly uptick in August 2022, illustrating how much the current month has diverged from the same period a year earlier.
Two sectors posted monthly gains in August: industry increased by 0.7% and trade by 0.1%. Conversely, services remained flat on a monthly basis, while electricity and water supply slipped by 1% in the month, contributing to the broader picture of uneven momentum across the economy.
Overall, the August figures paint a nuanced scene. While certain areas show resilience, the overarching trend points to softer turnover growth and a sharper year-over-year decline in some key sectors. The INE notes that these movements should be interpreted with caution, considering calendar effects, consumer demand patterns, and energy-related factors that influence utility and industrial activity.