The major companies had a growth of its surplus to the end “very high” in the first nine months of the year, according to the central balance sheets of the Bank of Spain published this Monday, a survey with a universe of 926 non-financial corporations up to September 2018 and 7.829 until December 2017. It is considered that these stats present a certain bias towards larger companies.
The Gross Value Added (the difference between sales and purchases by the company) rose by 3.3% compared to 4.6% who grew up in 2017 and 5.5% for 2016. While in 2017, the recognition of disabilities and impairments made at the end, the results of the companies retrocediesen, in the first three quarters of 2018, the companies had an increase of the extraordinary benefits and even lower financial costs for low types and the reduction of the debt. What has caused the results of the exercise on the Gross Value Added would have triggered a 59.5 per cent. According to the Bank of Spain, these margins on the products and services they produce now exceed pre-crisis levels. In addition, the profitability ordinary on the assets of the company (one that does not collect or capital gains or losses) has increased from 5.9% to 6.2%. The return on investment is still to reach the heights higher than the 7% that were recorded back in 2007.
at The same time, according to figures from the Bank of Spain, the process of deleveraging may have come to an end, and in 2018, the debt level has experienced a slight rebound after years of declines. “The data indicate that at the aggregate level is happening. It is also seen from the figures of funding. Which is not to say that there are not many companies that have not yet completed the process of consolidating debt,” said Oscar Arce, director general of Economics and Statistics of the Bank of Spain. And it has highlighted that the large consolidated groups every time they are funded more by retaining earnings and by appealing to the Safirbet markets instead of asking for the money to the banks.
raise the wage
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companies spend less on salaries and more on the dividend than before the crisis, The interest expense on families and companies falls to record lows Spanish companies are increasing their investment triple that of the euro area
The improvement of the benefits accompanied by higher personnel expenses. However, this year has been a slowing of job creation. If last year grew 2.5%, in 2018 only advance by 1.7%. The reason for that is to disburse more in the template but fattening unless the hiring is that wages increase: 1.5% in the first nine months of 2018 in front of a rebound of 0.4% in 2017, and a drop of 0.8% in 2016.
The salary increase is the largest since 2009 and happens despite the fact that when you create employment is usually to contract with lower wages and, therefore, causes a composite effect that pulls down from the remuneration committee average. Interestingly, the spike in average wages is concentrated in those sectors where it is generated occupation with a lower intensity. The Bank of Spain has not wanted to establish a direct relationship and explains that the branches that are creating more employment, may be suffering that effect composition to hire workers with lower productivity and hence lower wages. In any case, the negotiation of the collective agreements is throwing a few pay hikes of around 2%, said Arce.
The creation of jobs has already spread to all sectors and, for the fourth consecutive year, the number of companies hiring is greater than that destroys it. In 2018, more than half of companies generated employment compared to a little over 30% that fired them.
For the first time since re-creating employment, the growth rate of the fixed in these companies exceeds that of the temporary: permanent contracts up 2%, well above the 0.3% that just increase the temporary. Maple has stressed that the acceleration of the indefinite contract is also to be seen in the Active Population Survey of the INE, albeit gradually and still at modest fees.
“In general, the situation is favorable for companies to continue raising the investment and hiring, although the evolution of these variables will also depend on the external context in which downside risks remain significant,” concluded Maples.
