The tailwind driving the Spanish economy is reflected in the business fabric data. Sales of large companies and SMEs accelerated in the second quarter, recording a year-on-year increase of 3.4%, an improvement of more than one point compared to the beginning of the year. Investment and exports have been the main drivers of this leap. Foreign sales rebounded by 3.8%, the best figure since the first quarter of 2023, which also leaves behind the negative growth recorded between January and March. Job creation also held steady and wages continued to rise by 3.5%, in line with inflation, although in larger companies the wage increase fell short (2.5%).
The Tax Agency published this data in two separate series this Monday, the Statistics of Sales, Employment and Wages in Large Companies and SMEs, quarterly, and the monthly breakdown relating only to large companies, those with annual turnover of more than six million euros and which account for less than 1% of VAT declarants but more than 60% of total turnover. The information comes from VAT returns and withholding on employment income made by these companies.
The results indicate that between April and June domestic sales remained stable with an increase of 3.2%, according to the statistics, but with a change in its composition. While consumption moderated its growth compared to the beginning of the year — still advancing by 5.3% — investment gained momentum: it grew by 5.7% between April and June, almost a point above the previous quarter’s mark. Leading the way was investment in equipment and software (10.6%), while construction lagged behind (1.3%). However, foreign turnover was the item that recorded the greatest variation: it left the negative territory of the first quarter and posted a rise of 3.8%. Exports to the EU grew by 4.4%, almost two points more, and those to third countries experienced an increase of 3.2%, after falling 4.4% in the first quarter. Imports, meanwhile, rebounded by 4.8%.
These data, although representing a reduced universe of companies (around 1.1 million companies including large companies and corporate SMEs), coincide with the trajectory of national accounts: Spain’s GDP advanced by 0.7% between April and June — 2.7% in year-on-year terms — driven by the strength of domestic consumption and the resilience of investment. These elements were joined by an improvement in exports of goods and services favored by the tourist season, despite the widespread slowdown that freight transport is suffering globally.
If we look only at the data for large companies, which the Tax Agency analyzes separately, the advance was more contained: total sales rose by 2.6% in the second quarter of the year. Domestic sales slowed to 2.1%, with very different behaviors depending on the component: those directed to consumption lost ground, recording their worst monthly figure in June (0.6%); investment experienced a notable improvement (5.5% in the quarter); and meanwhile, construction linked three more months of declines. Exports, on the other hand, recorded a significant improvement: they rose by 4.6% between April and June and more than compensated for the half-point drop recorded between January and March. Non-EU markets captured the greatest growth, with rates of 5.2% compared to 4% for EU countries.
Employment
Employment growth accelerated slightly, with an increase of 3.6% in the quarter across the companies in the sample. According to the tax body, “it is possible that part of the improvement is related to the regularization process” of immigrant workers that began in April, as has happened with Social Security affiliation data. This increase impacted wages, which rose by 7.1%, also slightly above the rate recorded between January and March. The average wage increase, meanwhile, was 3.5%, similar to the previous quarter (3.4%) and in line with the price increases being recorded, which rose by 3.5% in July and 3.2% in the previous three months, pressured upwards by the energy crisis caused by the war in the Middle East.
In large companies, however, the average wage increase was smaller. Wages rose by 2.5% in the quarter, only one tenth more than in the previous period, and 2.7% in June (this series breaks down monthly data), only two tenths above May, despite prices rising above 3% in both months. These figures are closer to the wage increases recorded in collective agreements, a statistic that concerns more than 8.6 million workers who, on average, experienced a wage increase of 3% up to July, below inflation, according to the latest data released by the Ministry of Labor.
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