Friday 12/3/21

Spanish entrepreneurs face the fourth quarter of the year with greater confidence. 

In fact, only one in five believes that their situation will get worse at the end of the year. This could be a lot in another context, but the interpretation of the figures is different coming from a pandemic that imposed restrictions or directly forced the closure of many activities.

The latest business confidence indicators (BCI) produced by the Spain's National Statistical Institute (INE) show that optimism has increased by 1.1% among business managers in this fourth quarter compared to the previous one.

This is a moderate hike, actually the smallest since Q3 2020, but it comes at a significant time, with the end of summer and the tourist season.

Business-confidenceSource: INE.

The decrease in Covid-19 infections, the gradual lifting of restrictions and the reopening of society and businesses have influenced this improvement in expectations.

The fourth quarter coincides with the beginning of the winter season, but has several key dates for businesses such as the Christmas and Black Friday sales campaigns.

Confidence by sector

According to INE's figures, 18.9% of those responsible for commercial establishments consider that the performance of their business during the fourth quarter of 2021 would be favorable, while 21.5% believe that it would be unfavorable.

The remaining 59.6% thought it would be normal.

The INE has analyzed the situation in five economic sectors and says that in four of them confidence increases compared with the previous quarter.

Index-confidenceSource: INE.

Transportation and Accommodation (6.1%) registered the highest increase.

Confidence also increased, although much less, in Other Services (1.1%), Construction (1%) and Trade (0.1%).

On the other hand, Industry (−0.7%) registered the only decrease.

Confidence increased more among SMEs than among large enterprises.