One of the data points we will be following on this blog as the Spanish crisis develops will be the rate of creation and destruction of companies. The INE have just published the data here.
During April 2008 10,884 new companies were created, 12.0% fewer than in April 2007. The capital subscribed in their constitution was over 466 million euros, 36.4% less than in April 2007. In turn, the average capital subscribed registered an interannual decrease of 27.7%.
However if we look at the longer term chart, we can see perhaps a tendency towards a decrease in the rate of company creation since Q1 2007, but there have been spikes and troughs before, and there are good reasons to think that this time it will be different, and that perhaps we will get to see rather a large and extended trough. To be continued as the months progress.
In April, a total of 3,841 mercantile companies increased their capital, 12.4% more than for the same month of 2007. The capital subscribed in the increases registered an interannual increase of 9.4% and surpassed 3,622 million euros. The average capital subscribed in these operations decreased 2.7%.
On the other hand the number of companies dissolved in April was 1,178, a drop of 32.8% as compared with the same month of 2007. Of these, 85.0% did so voluntarily, 8.6% due to mergers and the remaining 6.4% for other reasons. Again there is considerable volatility in this data, but looking at the chart the rate of dissolution does certainly seem to have picked up since the middle of 2006.