In May, the Industrial Price Index (IPRI) recorded a year-on-year increase of 2.9%, driven by an 8.8% rise in energy prices and a 2.6% increase in intermediate goods prices, while non-durable consumer goods prices fell by 0.6%. The service sector accounted for 42% of GDP in 2016 and had over 1.5 million companies and €471 billion in turnover. SMEs are expected to generate over 500,000 new jobs by 2019, though job growth will slow to 2.6% annually due to declining construction employment. In June, OPEC and non-OPEC producers agreed to increase oil production by 700,000 barrels per day to

1. YoY change
HEADLINE INDEX 2.9
Durable consumer goods 1.4
Non-durable consumer goods -0.6
Equipament goods 0.9
Intermediate goods 2.6
Energy 8.8
22.7
18.2
16.9
42.2
Transport and storage
Professional activities
Telecommunications
Other sectors
38,249 32,404 18,962
60,469
31,211 18,624
280,175
256,217
219,015
0
50000
100000
150000
200000
250000
300000
350000
400000
2017 2018* 2019*
Agriculture Industry Construction Services
360
380
400
420
440
460
480
2008 2009 2010 2011 2012 2013 2014 2015 2016
0
500
1000
1500
Number of companies (right axis) Turnover (left axis)
2.9
1
0
2
4
6
8
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Headline Core
Business structure
In 2016, the number of companies in the
service sector reached 1,546,525, 14.3% more
than in 2015. Likewise, its turnover grew by
4.6% per year to 471 billion euros (42% of
GDP in 2016 ).
Employment at SMEs
In 2017, according to Randstad and
CEPYME, SMEs1
created 381,089 new jobs,
78.8% of the total employment created.
Similarly, forecasts show that over the next
two years more than half a million jobs will
be generated, with 82% concentrated in the
services sector.
However, estimates indicate that the pace of
job creation will slow down in 2019 to 2.6%
per year, 1.5 pp less than in 2017, mainly due
to the abatement in demand for employment
in the construction sector (-69.2% since
2017).
Industrial Price Index
In May, the Industrial Price Index (IPRI)
recorded a year-on-year increase of 2.9%,
1.1 pp higher than in April, and excluding the
effect of energy (1%), 0.1 pp less than the
previous month.
By sectors, after energy (+8.8%), the largest
increase was in intermediate goods (+2.6%),
as opposed to non-durable consumer goods
that decreased by 0.6%.
By sectors, transport and storage stood out
in turnover, which accounted for 22.7% of
the total, professional activities (18.2%) and
telecommunications (16.9%).
Business…
at a glance June 2018
Sectoral distribution by turnover
% of total
Business structure of services sector
Billion € and thousands of companies
Sources: Círculo de Empresarios based on INE, 2018
Industrial Price Index
YoY change (%)
Source: Círculo de Empresarios based on INE, 2018
SME’s employment creation by sectors
Number of jobs
Source: Círculo de Empresarios based on CEPYME and Randstad Research, 2018
Annual change (%) 4.1 3.3 2.6
*Forecast
1 Companies with 1 to 249 employees

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
117.6
101.8
100
105
110
115
120
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
-13.4%
56 53 51
46 46
29
55
50 48
43 41
35
Sweden Germany France Spain Netherlands Ireland
Have reduce business operations in the UK
Have reduced investment in the UK
82%
86%
96%
93%
103%
129%
135%
136%
155%
167%
171%
162%
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Target: 1.2 mbd
75%
76%
130%
140%
114%
93%
99%
78%
65%
73%
70%
54%
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Target: 0.55 mbd
-1.5
0.4
1.4
1.6
1.8
1.8
2
2.3
2.4
2.5
2.7
2.7
4.1
4.4
4.4
8
Portugal
Italy
Spain
Denmark
Belgium
France
Euroarea
Germany
Netherlands
Sweden
EU28
Ireland
Austria
Greece
UK
Poland
Labour costs
In Q1 of 2018, in year-on-year terms, the
labour cost per hour worked increased in
the euro area by 2% and in the EU28 by
2.7%. The least progress occurred in Spain
(+1.4%) and Italy (+0.4%), while Portugal
was the only country in which it dropped
(-1.5%).
Brexit and Business
In the survey "Brexit and Business: The EU
Outlook"2
(Baker Mckenzie), 46% of
Spanish business leaders state that since
Brexit they have reduced business
operations with the United Kingdom, and
43% have cut back on investments.
Of the six countries analysed, the lowest
impact, both in trade and in investment, has
occurred in Ireland.
Ifo Business Climate Index
In June, the confidence index of German
business owners has fallen to 101.8 points,
reaching its lowest level since October 2014.
Since January 2018, it has fallen by 13.4%,
mainly due to the uncertainty caused by the
trade tensions between the US, China, and
the EU.
OPEC meeting
In May, the cuts in oil production reached
almost 1.9 million barrels per day, exceeding
by 62% the commitment reached in
November 2016, due in part to the lack of
supply in Venezuela, Libya, and Angola.
Therefore, in order to reach the agreed
production levels, on June 22, OPEC and ten
other producers agreed to increase the joint
supply of crude oil from July to around
700,000 barrels per day.
Oil production target
Trade and investment implications of Brexit
% of entrepreneurs surveyed
Source: Círculo de Empresarios based on Baker McKenzie, 2018
Ifo Business Climate Index
Source: Círculo de Empresarios based on CESifo Group Munich, 2018
OPEC nations Non-OPEC nations
Source: Círculo de Empresarios based on Bloomberg, 2018
Labour Cost Index (LCI)
Annual change (%)
Source: Círculo de Empresarios based on Eurostat, 2018
2 800 business leaders from six EU countries were surveyed