Results of non-financial corporations in 2017 Q4 : preliminary year-end data

Abstract

Non-financial corporations continued to create employment in 2017, with the trend extensive to all sectors according to the CBSO quarterly sample. As to business activity, although both gross value added and ordinary net profit continued to grow, they did so at a more moderate pace than the previous year, largely owing to the negative performance of certain large corporations with a high weight in the quarterly sample. The non-recurrent items had an unfavourable impact on the final surplus, leading it to shrink significantly. Lastly, the returns on ordinary activities rose and the debt and debt burden ratios declined, suggesting a further improvement in firms’ economic and financial situation. The article also analyses recent developments in trade credit, where there was evidence last year of a pick-up in this financing arrangement, accompanied by reductions in average payment and collection periods