.

1. 3.0
2.5
4.4
-1
0
1
2
3
4
5
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
Q42019
Labour Cost Salary cost Other costs
-30
-20
-10
0
10
50
100
150
2006 2008 2010 2012 2014 2016 2018
Number of companies YoY change (right axis)
2019
-2.1
-8
-6
-4
-2
0
2
4
6
8
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Industrial Production, Spain
In January, the Industrial Production Index
(IPI) decreased 2.1% year-on-year, its
biggest drop since March 2019 (-2.7%).
By sectors, all have fallen, especially in
energy (-5.8%) and consumer goods (-1.8%).
By Autonomous Community, the IPI only
increased in Navarra (8.6%) and Galicia
(2.9%), while the largest declines were
recorded in Andalusia (-12.1%), Asturias
(-8.1% ) and Balearic Islands (-6.8%).
Businessdevelopment,Spain
In 2019, business development decreased
1.2% year-on-year (vs. +1.1% in 2018), down
to 94,840 companies, far from its maximum
of 150,000 in 2006.
By sectors, services accounted for most of
the companies created (74.7%), followed by
construction (13.8%), industry (8.8%) and
agriculture (2.7%).
98.6% of the companies were allocated as
limited companies, and 0.4% as public
limited companies. This data responds to
the size of our business structure
characterized by the large number of small
and medium enterprises.
Labour cost, Spain
In Q4 2019, the labour cost per hour worked
increased 3% year-on-year, 1.4 percentage
points more than in the same quarter of
2018. In the year as a whole, the average rate
was 2.9%, compared to 0.5 % in 2017 and
1.6% in 2018.
By components, in Q4 2019, other costs
registered an increase of 4.4% year-on-year,
and wage costs 2.5%.
By industry, the annual increase in the real
estate sector stands out (6.6%), compared to
the lower growth in the electricity supply
sector (0.8%).
Business…
at a glance March 2020
Labour cost, España
YoY change (%)
v
Source: Círculo de Empresarios based on Colegio de Registradores, 2020
Business development, Spain
Thousand of companies created and YoY change (%)
v
IPI evolution, Spain
YoY change (%)
v
Source: Círculo de Empresarios based on INE, 2020
Source: Círculo de Empresarios based on INE, 2020
1The remaining 1% corresponds to partnerships, limited partnerships,
reciprocal guarantees etc.

2. ‘Business at a glance’, a publication of the Círculo de Empresarios produced by its Department of the Economy, containsinformation and opinionfrom 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
44
46
48
50
52
54
56
Apr-17
Jun-17
Aug-17
Oct-17
Dec-17
Feb-18
Apr-18
Jun-18
Aug-18
Oct-18
Dec-18
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Composite PMI Manufacturing PMI Services PMI
Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20
Germany 48.5 48.9 49.4 50.2 51.2 50.7
UK 49.3 50 49.3 49.3 53.3 53
US 51 50.9 52 52.7 53.3 49.6
Japan 51.5 49.1 49.8 48.6 50.1 47
China 51.9 52 53.2 52.6 51.9 27.5
30
40
50
60
70
2-Jan
7-Jan
12-Jan
17-Jan
22-Jan
27-Jan
1-Feb
6-Feb
11-Feb
16-Feb
21-Feb
26-Feb
3-Mar
8-Mar
2019
2020
2019
2020
Brentoil price
WestTexasoil price
0
1
2
3
Mar-15
Aug-15
Jan-16
Jun-16
Nov-16
Apr-17
Sep-17
Feb-18
Jul-18
Dec-18
May-19
Oct-19
Mar-20
FED
Bank of Canada
Reserve Bank of Australia
Economic Sentiment
In February, the PMI composite indicator
fell 6.1 points in the contracting zone (46.1
points), its lowest level since May 2009.
The deterioration occurred both in the
manufacturing sector (down to 47.2 points)
and in the services sector (down to 47.1
points).
By country, the paralysis of the Chinese
economy facing the closure of factories
located at the epicenter of the epidemic, and
the restrictions on the mobility of its
citizens were emphasized.
In this scenario, the Chinese composite PMI
contracted down to 27.5 points due to sharp
falls in both the manufacturing and services
sectors.
Monetary stimulus of Central Banks
Uncertainty in financial markets, given the
spread of the coronavirus and its possible
repercussions on the real economy, has
forced the central banks of the major
economies to adopt monetary stimulus
measures to support confidence among
economic agents.
• The Fed has lowered the official interest
rate by 50 bp (down to the 1% -1.25%
range).
• The Australian Central Bank cut rates by
25 bp to 0.5%.
• The Bank of Canada reduced them by 50
bp to 1.25%.
Indeed, the ECB has increased its quantity
easing (QE) from €20 to 120 billions of €
until the end of the year.
Evolution of oil prices
Since the beginning of the year, as a
consequence of weakening global demand,
oil prices have accumulated notable
decreases.
In this context, the lack of consensus at the
OPEC meeting to maintain its policy of cuts,
and the increase in production by Saudi
Arabia by 10 million barrels per day, have led
to the collapse in oil prices.
Specifically, in the second week of March,
the price per barrel of Brent contracted to
$31 per barrel (-31.5%), and West Texas to
$30 per barrel (-27.4%), registering the
biggest one-session drops since 1991.
As a result, in 2020 both Brent and West
Texas per barrel prices have accumulated
decreases of 46.5% and 45.1%, respectively.
Source: Círculo de Empresarios based on Markit, JP Morgan and
Caixin, 2020
Theimpactofthecoronavirusontheglobaleconomy
Global PMI
Points
Composite PMI
Points
Source: Círculo de Empresarios based on Thomson Reuters, 2020
Official interest rate
%
Oil prices
$ per barrel
Source: Círculo de Empresarios based on EIA, 2020