The Average Period of Payment to Suppliers (PMP) of all Public Administrations -Central Administration, Autonomous Communities, Local Entities and Social Security Funds- has decreased in May 2023.

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Average Period of Payment to Suppliers in May

Specifically, in the fifth month of the year, the Autonomous Communities reached a period of 23.48 days, which is less than the 30 days established as the legal limit. In this subsector, the PMP has decreased by 2.4 days in relation to the previous month.

On the other hand, the payment term of the Central Administration was 27.88 days in the fifth month of the year, which represents a decrease of 4.61 days in relation to the previous month, while Local Entities in the assignment model had a payment term to suppliers of 35.09 days in May, which represents a significant improvement with respect to the same month of the previous year when it decreased by 21.41 days.

For its part, the PMP recorded in the Social Security Funds was 10.95 days in May of this year, 1.37 days less than last month.

Central Administration data
The PMP of the Central Administration was 27.88 days in May, a decrease of 4.61 days compared to April 2023.
The ratio of transactions paid stood at 30.55 days, while the ratio of transactions pending payment reached 24.23 days.

Data from the Autonomous Communities
In the Autonomous Communities, the Average Period for Payment to Suppliers in May was 23.48 days, which represents a decrease of 2.4 days with respect to the previous month, or 9.27%.

In relation to the composition of the PMP, the ratio of transactions paid stood at 22.18 days and that of transactions pending payment at 25.83 days. This represents a reduction of 0.83 days in the ratio of operations paid and a decrease of 4.09 days in the ratio of operations pending payment, with respect to the previous month, respectively.

Commercial debt
Commercial debt amounted to 3,639.7 million euros, equivalent to 0.26% of the national GDP. This represents a reduction of 152.6 million euros with respect to the previous month.

With regard to payments of a commercial nature made in May, these amounted to 6,622.5 million euros, which represents an increase of 17.45% with respect to May 2022. Of these, 4,194.9 million euros correspond to payments of a healthcare nature, which represents an increase of 16.81%, compared to the same period of the previous year.

Data from Local Corporations
In May, the local authorities presented an Average Payment Period to Suppliers of 35.09 days. Compared to the same month of the previous year, the payment period in Local Corporations decreased by 21.41 days, which represents a significant improvement. The evolution is shown in the following graph:

An analysis of the payment period for the component of invoices pending payment on May 31 shows a significant improvement with respect to the same day of the previous year, given that this ratio decreased by 26.2 days. With respect to the component of invoices paid during the month of May, the average payment period was 18.7 days.

On the other hand, if the PMP for May 2023 were compared with that of the previous month, a decrease of slightly less than 4 days would be observed, although this difference loses representativeness as it is a magnitude with seasonality.

The aggregate indicator of the PMP for the group of entities with monthly reporting obligations is calculated using the methodology established for each local corporation individually, i.e., the days are weighted according to the volume of debt, so that the entities with greater indebtedness to suppliers contribute to a greater extent in the composition of the PMP.

There are 152 local entities with the obligation to submit the PMP on a monthly basis, and all of them have complied with the obligation to submit this information.

The data supplied for the PMP shows an asymmetrical distribution among entities. Thus, while 114 entities, representing 75% of the total, have a PMP of less than or equal to 30 days, 15 of them have an excessive PMP, given that they exceed 60 days of payment to suppliers.

Of the main cities, the PMP data is shown in the table below:

It is observed that three of them present a PMP higher than 30 days, but none of them exceeds 60 days.

PMP in Social Security Funds
In the case of the Social Security Funds, the PMP for May was 10.95 days, a decrease of 1.37 days compared to the previous month.

The ratio of transactions paid was 9.07 days, while the ratio of transactions pending payment was 20.67 days.