The constitution of companies falls 15% in July and its financial capacity suffers

The company creation this year it continues below the levels recorded in 2021 despite the 'rebound effect' that our economy experienced after the impact of the pandemic. The data for July from the study on 'Business Demography' carried out by Informa D&B show that the constitution of companies fell by 15% compared to the same month of 2021 and 21% compared to June, resulting in a total of 7,406 companies created in the seventh month of 2022.

The financial muscle of the same also shows a decrease, since the capital invested for the constitution of the same decreased by 13% in the accumulated of the year, for a total of 2,915 million euros, of which 263 correspond to July, the month in which the fall is 50% compared to the previous year.

«The decrease in the creation of companies can be seen in most communities and sectors of activity in July, with Financial Intermediation being the main cause of the decrease in capital investment this month, with a cut of more than 216 million euros» , says Nathalie Gianese, Research Director at Informa D&B. Specifically, this sector suffered a drop in its accumulated investment for the year of 320 million, which leaves it at 1,192 million per year.

The Construction and real estate activities sector responds positively, with an increase of 7% in the constitutions from January to July, as well as Hospitality and Other services, which increased the number of companies by 10 and 7% respectively during the first seven months of 2022. The negative side is for Commerce, which experienced a reduction in the number of constitutions of 1,201 during the cited period.

By Autonomous Communities, Madrid, Catalonia and Andalusia are where more companies are created, representing 59% of the total constitutions so far this year, although they also suffer the greatest decrease in them. Navarra is the only case in which constitutions were increased in July, 19% more.

Capital increases decrease

For companies already established, capital increases decreased by 12,713 million during the first seven months of the year, which represents a fall of 24.52% compared to the 16,843 million registered in the same period of the previous year according to the report 'Radar Business of Capital Increases' prepared by Axesor.

The firm adds that 93% of the 17,251 capital increase operations were carried out by small companies that invested a total of 7,501.7 million euros. Banks and insurers monopolize the majority of the extensions so far this year for an amount of 3,604 million, which represents a reduction of 54% compared to the same period in 2021.

Extensions also fell in Construction by 15.48% to stand at 1,607 million for the year, while increases were recorded in the Real Estate sector (9.80%), Hospitality (11.50%) and Transport and Storage (also 9.80% more).

By region, the Community of Madrid registered a total of 4,693.75 million euros of reduced capital, which compared to the first seven months of last year 2021 means 89.39% more. Andalusia repeats in second position with a disinvestment of 2,518.73 million euros, 884.12% higher. The last place on the podium is occupied by Catalonia, with 1,276.39 million euros, although in this case, the amount is 10.72% lower than that registered during the same period in 2021.

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