Confidence among consumers increases
In the latest update from the National Statistics Institute (INE), Spain's Consumer Confidence Indicator (CCI) has shown a modest recovery after a downward trend post-2021. The CCI, which measures households' plans for major purchases and their perceived current and future economic situation, dropped to 94.31 points in August 2022 but has since risen to 99.7 points by August 2024 [1]. This gradual improvement, though still below the long-term average of 100, suggests a slow but steady recovery.
The current state of consumer confidence in Spain is influenced by various factors. One such factor is the economic conditions, both current and future, as perceived by consumers. This involves qualitative assessments based on consumers' positive and negative expectations [1].
In the business sector, the picture is somewhat mixed. According to data from July 2025, industry confidence marginally improved, with production expectations rebounding from negative to positive territory [2]. However, this improvement was tempered by declining order books and rising finished goods inventories, indicating demand weakness which may indirectly affect consumer sentiment.
The Conference Board’s Leading Economic Index for Spain rose slightly in May 2025, supported by equity prices and order books, signaling ongoing economic expansion despite some investment weakness. This backdrop helps shape consumer expectations about income and employment prospects, critical components of confidence [3].
In July, the economic climate indicator remained stable, while confidence indicators in public works and construction, manufacturing, and commerce increased. However, the upward movement observed in the economic climate indicator for the previous three months was suspended in July [4].
In summary, consumer confidence in Spain is rebounding gradually after recent declines, influenced by factors such as current economic conditions, expectations for income and employment, and business sector trends like production and demand signals. While improvements are visible, confidence remains somewhat cautious given the mixed signals in demand and employment [1][2][3][4].
[1] National Statistics Institute (INE). (2022). Consumer Confidence Indicator. Retrieved from [https://www.ine.es/dyngs/INEbase/en/operacion.htm?c=Estadistica_C&cid=1254736576607&menu=resultados&p_datos=0&op=nivel&idp_ind=indicadores&idpu_ind=1254736576607]
[2] National Statistics Institute (INE). (2025). Business Confidence. Retrieved from [https://www.ine.es/dyngs/INEbase/en/operacion.htm?c=Estadistica_C&cid=1254736576607&menu=resultados&p_datos=0&op=nivel&idp_ind=indicadores&idpu_ind=1254736576607]
[3] The Conference Board. (2025). Leading Economic Index for Spain. Retrieved from [https://www.conference-board.org/data/briefing/lei/spain.cfm]
[4] National Statistics Institute (INE). (2025). Economic Climate Indicator. Retrieved from [https://www.ine.es/dyngs/INEbase/en/operacion.htm?c=Estadistica_C&cid=1254736576607&menu=resultados&p_datos=0&op=nivel&idp_ind=indicadores&idpu_ind=1254736576607]
The improvement in the business sector, as indicated by the Conference Board’s Leading Economic Index and the National Statistics Institute's Business Confidence data, can have a significant impact on the overall economic conditions [2][3]. This influence on the economy could further shape consumers' financial expectations and, consequently, their confidence in the long run.
As businesses recuperate and exhibit promising indicators, such as positive production expectations and rising equity prices, this could boost consumer confidence, providing a more favorable environment for future business and finance endeavors.
