Business Confidence Plummets to Record its Greatest Decrease since 2013

Business confidence in the second quarter of this year has decreased by 26.9% compared to Q1, a record low that marks the largest decline in the series since it began in 2013.

The National Institute of Statistics (INE) has published the Harmonised Business Confidence Index (ICEA), which stands at 95.5 in the second quarter of 2020, its lowest value in history. Transportation and hospitality (−32.4%) recorded the greatest decrease, followed by construction (-29.3%). For its part, industry (−23.3%) registered the lowest decrease.

75% of the companies surveyed by the National Institute of Statistics consider that the outlook for their businesses for the period April to June is poor and, therefore, the performance of their businesses will be unfavourable. And only 3 out of 100 companies believe that they will see a positive evolution in the coming months, whilst 22% do not foresee any major change in their activity.