Spain has been one of the few major European economies that has shown some signs of life since the crisis but the Bank of Spain has today warned that there are signs that even that is waning.
They say that growth in private consumption and new job creation are showing signs of slowing in Q3 . This doesn’t bode well after the economy grew at it’s fastest pace for 6 years in Q2.
In its monthly report the bank said;
“The most recent information, referring to the third quarter, seems to indicate private demand was less expansive. In the case of domestic consumption, opinion polls and retail sale indicators are, on average in July and August, below levels seen in the second quarter.”
With the second highest unemployment rate in Europe, the bank also warned that employment data was expected to slow compared to H1.
There’s lots of dead cat bounces going on in Europe at the moment and they are in a tough position when even modest attempts at seeing growth rise get knocked back. Spain is pretty good at tipping the nod to their economy so we can expect this report to be borne out in upcoming data.
