Monthly summary of the state of the Spanish company and internatiomal

1. 3.9
2.8
-0.4
-0.6
-1.4
3.2
0.6
1.2
2.9
2.3
2.5 2.7
0.4
0.4
4.6
4
3.2
2.6
3.5
4
4.1
5.9
0.8
3
5.1
-2
2
6
10
Mar-16
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
Jan-18
Mar-18
YoY variation
Index 5.1
Consumer goods 3.4
Equipment goods 4.9
Intermediate goods 3.3
Energy 9.7
80,481 85,220 87,606
93,756 94,606 94,981
102,396 94,998
20,708 21,944 23,823 26,720 24,980 26,026 27,357 28,754
30.3
0
20.000
40.000
60.000
80.000
100.000
120.000
22
24
26
28
30
32
2010 2011 2012 2013 2014 2015 2016 2017
Births (right axis)
Deaths (right axis)
% death of companies on births companies (left axis)
20.8
26.8
14.6
14.1
10.5
7.3
4
12.9
13.4
13.3
12.6
11.3
9.3
6.2
17.2
16.5
19.6
17.3
16
14.4
10.7
13.6
13.6
14.1
13.2
12.8
12.7
10.6
10.5
9.7
11.6
11.4
11.8
12
11.6
8.7
7.5
9.7
10.2
10.9
11.3
11.8
16.3
12.5
17.2
21.3
26.8
32.9
45.1
total
no employees
1-2
3-5
6-9
10-19
+20
less than 2 years from 2 to 3 from 4 to 7 from 8 to 11 from 12 to 15 from 16 to 19 more than 20
Business structure
In 2017, 28,754 business deaths occurred, a
death rate of 5.1% more than in 2016,
representing 30.3% of the 94,998 companies
set up throughout the year.
By company size, a positive relationship is
observed between its age and size. In the
case of Spanish companies, 45.1% of those
with more than 20 employees have remained
active for more than 20 years, compared to
12.5% of those without salaried employees.
Wage growth in Spain
According to the Tax Agency, in March, the
average gross wage for large enterprises*
grew at a year-on-year rate of 0.9% (0.2 pp
more than in February), in a context in
which employment grew at a rate of 3.5%
year-on-year.
By sector, the wage rise in industry (+1.8%)
and in agriculture (+1.4%) stands out, as
opposed to the decline in construction and
real estate activities (-0.7%).
Industrial Production Index
In March, the seasonally adjusted Industrial
Production Index (IPI) grew by 5.1% year-
on-year, 2.1 pp more than in February,
exceeding the growth recorded in the EU28
(3%). By components, the increase in energy
(9.7% year-on-year) and equipament goods
(4.9%) stands out.
Likewise, the manufacturing PMI continued
in expansion as it stood at 54.4 points.
0.9
3.5
-10
-8
-6
-4
-2
0
2
4
6
8
10
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Evolucióndel nº de empleados y el salariomediobruto
variación interanual (%)
Average wage Number of employees
Business…
at a glance May 2018
Source: Círculo de Empresarios based on Tax Agency, 2018
Active businesses by number of employees & age intervals
%
Business births and deaths
% and count of companies
Source: Círculo de Empresarios based on Colegio de Registradores, INE and Bankia, 2018
Evolution of number of employees and average gross salary
Year-on-year change (%)
Seasonally adjusted IPI
Year-on-year change (%)
Source: Círculo de Empresarios based on INE, 2018
*Companies with a volume of sales higher than 6.01 million of € in a
calendar year
Numberofemployees

2. ‘Business at a glance’, a publication of the Círculo de Empresarios produced by its Department of the Economy, contains information and opinion from reliable sources. However,
the Círculo de Empresarios does not guarantee its accuracy and does not take responsibility for any errors or omissions. This document is merely informative. As a result, the
Círculo de Empresarios is not responsible for any uses that may be made of the publication. The opinions and estimates of the Department can be modified without prior warning.
www.circulodeempresarios.org
46.5
29.7
0
10
20
30
40
50
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Chinese FDI in US US FDI in China
Restrictions of Chinese
authorities
Trade with the UK
In 2017, the United Kingdom was the fifth
largest trading partner of Spain representing
7% of total exports of goods and 9.4% of
goods and services.
A quarter of the Spanish export companies
have the United Kingdom as their main
commercial destination. In addition,
between 2012 and 2017, their count
increased by 8% to 11,695 companies, of
which 14% are regular* exporters.
However, since the Brexit, the number of
exporting companies has fallen by 0.8% and
the value of its exports of goods by 6%.
S&P 500
In Q1 2018, S&P 500 companies recorded a
year-on-year increase in profits of 24.9%
(the highest level since Q3 2010).
By sectors, the greatest increase was
recorded in energy (+95% year-on-year),
raw materials (+44.1%), information
technology (+33%), and in the financial
sector (+29.6%).
This development took place in an
environment in which the S&P 500’s
annualised volatility in the first 90 days of
the year was 18.6%, 12.1 pp higher than in the
same period of 2017.
Chinese FDI in the US
In 2017, China's foreign direct investment
(FDI) in the US, after reaching its record
high in 2016, dropped by 36% to $ 29.7
billion (0.15% of US GDP), due in part to
restrictions imposed by the Chinese
authorities on the outflow of capital.
Currently, the lion’s share of Chinese FDI is
primarily concentrated in the real estate
sector and the US infrastructure sector.
-10
-5
0
5
10
15
2012 2013 2014 2015 2016 2017
Valor exportaciones
variación interanual (%)
0
3
6
9
2012 2013 2014 2015 2016 2017
Empresas exportadoras
% del total
Big enterprises SMEs Total
22.7
6.4
24.9
8.2
29.6
13.1
Earnings Revenue
S&P 500 ingresos y beneficios en el 1T de 2018
% crecimiento interanual
S&P 500 > 50% of sales in US
All S&P 500 companies
S&P 500 < 50% of sales in US
95
44.1
33 29.6 24.9
Energy Materials Tecnology Financial Sector Average 11 sectors
Evolución de los beneficios
% crecimiento interanual
Source: Círculo de Empresarios based on Factset, 2018
S&P 500 Earnings and Revenues, Q1 2018
Year-on-year change (%)
S&P 500 Earnings Q1 2018
Year-on-year change (%)
Source: Círculo de Empresarios based on Bank of Spain and ICEX, 2018
Value of exports of goods to the United Kingdom
Year-on-year change (%)
Companies that export to the United Kingdom
% over the total number of companies
Foreign Direct Investment (FDI)
Billions of $
Note: ‘Other sectors’ includes consumer and product services and electronic equipment
Breakdown of FDI by sectors (% over the total)
*Companies that have exported over the past four years in a row
Note: with 91% of companies in the S&P 500 reporting results
Source: Círculo de Empresarios based on Caixabank Research and Rodium Group, 2018
36.5
37.3
35
13
28.5
48.7
2017
2016
Real Estate Transport and Infrastructure Others sectors