Spain | Impact of COVID-19 on consumption in real time and high frequency: 9 July

Summary

The recovery in consumption lost momentum the week of 29 June to 5 July. Card spending fell -3% year-on-year, 2 points more than the previous week, despite the 4% increase in purchases with Spanish cards. Spending with foreign cards moderated its adjustment to -67%.

Key points

• Key points:
• Although purchases with Spanish cards increased in 48 provinces, growth weakened in 9 out of 10. The slowdown in spending was greater in the territories that had registered greater progress the previous week, such as Albacete, Cáceres, Segovia and Zamora.
• However, the increase in purchases with Spanish cards exceeded 10% in 26 provinces, standing out in Melilla, Avila, Soria, Cuenca and Caceres. Consumption only fell in Huelva, Madrid, Castellón and the Balearic Islands.
• The improvement of purchases with foreign cards was concentrated in the provinces bordering France. On the other hand, in the Canary Islands (-83%) and Balearic Islands (-81%) it is still far from the one made a year ago, waiting for the normalization of the airport traffic.
• Food sales continued to lead the recovery in face-to-face spending last week (42% year-on-year), accompanied by the home equipment distribution sector (37%) and health (17%). The reduction in demand for accommodation moderated to -58% year-on-year, but the recovery in clothing and footwear purchases was truncated (-25%) with the extension of the sales.
• The fall in cash withdrawals was reduced to -5% year-on-year between 29 June and 5 July, coinciding with the generalisation of payroll collection, which narrowed the differential between the growth in withdrawals and purchases to 2 points. Thus, cash withdrawals increased in 16 provinces last week, especially in Andalusia and Castilla-La Mancha, and at the opposite end of the scale were Teruel (-18% year-on-year), Ávila (-15%), Soria and Zamora (-14%).

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