Spain | Downward pressure on growth and job creation at the onset of Q3

Summary

After the downward surprise in the second quarter of 2019, the growth of the Spanish economy could be around 0.5% t/t during Q3. The available data reinforces the perception that domestic demand has slowed, while external demand is regaining some traction. Moreover, the slowdown in job creation is confirmed

Key points

• Key points:
• GDP growth is lower than forecasted at the beginning of the quarter
• Domestic demand is slowing, held back by consumption and investment in machinery and equipment
• External demand recovers and leads quarterly GDP growth in 2Q19
• Signs of weakness in the labor market
• Inflation increases slightly in July and will rise again in August

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