New figures show that company turnover declined by 2.7% in November compared with the same month in the previous year, according to the Business Turnover Index (ICNE) released this week by the National Institute of Statistics (INE). This drop represents a smaller decline than the inter-annual drop seen in October, easing by forty percentage points from the prior month’s pace.
In November 2023, a month traditionally marked by the Black Friday shopping event, the sales trend continued its downwards trajectory for eight straight months on an annual basis, after a stretch of positive growth lasting 25 consecutive months.
Most sectors posted negative results in November, with the exception of services, which still managed to grow its sales by 5.7% compared with November 2022. This contrast highlights shifts within the economy that were masked in other areas by lingering inflation and changing consumer behavior.
Among the sectors, electricity and water supply stood out for the sharpest declines, dropping sales by 26.4%. Following closely were industry and commerce, where turnover fell by 2.2% and 1.9% respectively when compared with November 2022. These movements underscore the uneven recovery patterns across the economy during the late autumn period.
Adjusted for seasonal and calendar effects, company turnover fell by 2.7% year-on-year in November, showing a modest improvement relative to October, where the decline stood at 4.8% and a 2.1 percentage point reduction was observed from one month to the next.
The most pronounced drop in the seasonally adjusted series mirrored the pattern seen in electricity and water supply, with a 26.1% decrease year over year. Industry followed with a 2.3% fall, and trade registered a 2.2% decline. In contrast, the services sector recorded a solid 5.3% increase in annual turnover, illustrating a diversification in performance across different economic activities.
Sales rise by 1.3% driven by Black Friday activity
Month-over-month sales, both in current values and in the adjusted series, rose by 1.3% in November 2023 compared with the immediately preceding month. This marks the largest monthly increase since August 2022, signaling a potential stabilization in parts of the economy amid seasonal shopping fluctuations.
Among the four sectors analyzed, electricity and water supply was the only one to show a monthly decline, down 1.8%. By contrast, trade experienced the most notable gain, aligning with the Black Friday period and registering a 1.9% increase in turnover.