Business confidence in Spain has seen a slight 0.1% increase in the second quarter of 2025 compared to the previous quarter, according to the latest data published by the National Statistics Institute (INE). This modest improvement is mainly driven by the transport and hospitality sectors, which posted the highest increase at 1.6%. In contrast, the “other services” sector was the only one to register a decline, falling by -1.1%.

When broken down by business size, companies with fewer than 10 employees showed the strongest rise in confidence (0.7%), while large companies with 1,000 or more employees experienced the steepest drop (-1.4%).

Expectations for the second quarter

Looking ahead, 22.8% of business managers expect their company’s performance to be favorable in Q2 2025, while 11.6% anticipate a negative outcome. Regarding employment, 12.9% foresee staff increases, whereas 7.8% expect job cuts.

When it comes to price levels, 15.6% of respondents expect prices to rise, and 4.3% believe they will fall.

Review of the first quarter

In retrospect, 20.3% of managers rated their business performance in the first quarter as positive, while 15.8% gave a negative assessment. These figures suggest a slightly improved perception of business conditions, though caution remains.

Results by region

Business confidence increased in 10 autonomous communities and decreased in the remaining seven. The most notable increases were recorded in La Rioja (3.7%), Balearic Islands (3.0%), and the Valencian Community (2.6%). The steepest declines were observed in the Region of Murcia (-2.7%), Galicia, and the Community of Madrid (both with -2.0%).

source: INE