New improvement signals of the activity

Just as other well-known indicators recently, sales of the large businesses evolved throughout 3T17 of less to more: the good record of September counteracted loose details of July and August and the balance sheet of the quarter went the best one in two years (+4.2 % year-on-year vs +4 % previous), thanks to the pull of the exports, basically the extracommunity ones, and the accelerated tone in the construction and, above all, in the industry, when dealing with a cushioned rhythm in the services.

On the other hand, the inflation was reduced in October, two tenth until 1.6 %, thanks to the favourable energy evolution and, to a certain extent, industrial and services goods, in contrast with the inflationist live foods recovery, affected by the drought. We maintain our close forecast of year for the inflation rate around 1.1 % (1.9 % of annual average), since the markup of live foods and electricity will will be counteracted by the effect step when dealing with the big increase in the final stretch of 2016.

Source: Bankia Studies