Update: A more thorough analysis of the Spanish economy is at my post Outlook for Spain: Recession.
The leading Spanish Newspaper ABC is reporting that furniture sales are down 20% nationally for the first three months of 2008 due to the housing bust in Spain. As in the US, affected property markets will see the property slowdown spill over into employment and growth prospects in related sectors of the economy.
These areas include home builders, real estate agencies, moving companies (as reported on BBC 5 Live’s Wake Up to Money program this morning), the furniture industry, home improvement businesses as well as local state services. Home Builder are really feeling it in Spain, as the Spanish newspapers are reporting huge falls in revenue. They have asked for a massive $40 billion Euro liquidity injection to stabilize the market.
These same industry and local government effects have and will continue to be felt in the UK, the U.S. and Ireland, three markets also already in decline.
Sources
La venta de muebles cae un 20% en los tres primeros meses del año, ABC, 16 May 2008
La caída del 72% en las ventas de pisos arrastra a las inmobiliarias, El Pais, 16 May 2008
Money: Removals – 19 May 08, BBC Radio Five Live Podcast, 19 May 2008
Los inmobiliarios piden una inyección de liquidez de 40.000 millones, ABC, 15 May 2008
See also: Other posts under the label ‘Spain.’