The latest report from the TIC Monitor barometer, developed by the VASS Foundation together with the CEPREDE Economic Forecasting Centre, reveals that digital services companies in Spain continue to show notable growth, despite an environment of uncertainty and some caution in the market.
Data for the first half of 2024 indicate that the digital services sector has seen an average growth of 10%. Adjusted for price changes, this translates into a 6% increase in turnover so far this year. However, the year-on-year comparison of June 2024 with June 2023 shows a significant decline, with a modest increase of 2.6%, which could turn negative if price effects were applied.
The barometer shows positive data on the evolution of the digital services sector in Spain in the first four months of the year
«We will have to keep an eye on the upcoming data on the evolution of activity to see if the year-on-year figure for June is simply an outlier or if a cooling-off phase is beginning. The turnover per employee ratio has already suffered, with a negative year-on-year evolution for the second time in the last 32 months. The continued creation of jobs in the digital sector will depend greatly on how this variable evolves, together with business expectations.”says Antonio Rueda, director of the VASS Foundation and responsible for the TIC Monitor.
The digital services sector
Despite this outlook, job creation in the sector remains positive, with an average growth of 4.1% in the first six months of 2024 and a year-on-year rate of 3.7% in June. This dynamism in hiring is more than double the average for other service activities, which stands at 1.6%. In addition, in the last year, 26,799 new members have joined the sector, reaching a total of 483,353 professionals, which places the sector in fifth place nationwide.
The short-term outlook is also favourable, according to data collected in July. 64.9% of employers expect to increase their turnover in October, while 65.4% expect net job creation, figures that more than double the optimism registered among companies in the sector in the European Union.
