The overall budget execution figures for 2Q 2018 showed a slight adjustment to public sector accounts.

Inflation was unchanged at 2.2% YoY, in line with figures anticipated by CaixaBank Research.

Appraisal prices for housing climbed powerfully in the second quarter of the year, in line with expectations, consolidating the rising trend for housing prices that began in 2015.

Should the model forecast prove accurate, the pace of GDP growth would stand 1 tenth below the 2Q 2018 figure (0.6% QoQ).

The budget execution figures available up to June show a slight adjustment to overall public sector accounts as a whole, excluding local authorities.

Inflation held at 2.2% in August, thus matching the preliminary figure released by the National Statistics Institute on August 30.

Employment declined in August, as is usually the case during this month, with the number of Social Security affiliates falling by 202,996.

Inflation was up 0.2 pp in June, reaching 2.3%, thus matching the flash INE figure released on 28 June.

The labour market performed very positively in June, as evidenced by the significant 91,000 uptick in social security affiliates, in line with the CaixaBank Research forecast (90,000).

Improving economic activity again drove a reduction of Spain’s public deficit. However, the public deficit in Q1 shrank by just 1 tenth, of the total 9 required to secure the 2018 deficit target of 2.2%.