Sunday, 19 October 2025
Spanish businesses are approaching the final quarter of the year with a slightly brighter outlook, as recent surveys and sentiment readings point to a gradual return of confidence after months of mixed signals from both domestic and international markets.
The latest readings suggest that companies in Spain are feeling modestly more optimistic about the near-term business environment compared to the start of the year. Confidence among firms in manufacturing, construction and services has been improving since the summer, supported by steady domestic demand and an uptick in tourism activity. While uncertainty remains, especially around external demand and financing costs, the overall tone among business leaders has shifted from caution to cautious hope.
In the third quarter, business confidence strengthened for the second consecutive period, reversing part of the slowdown seen earlier in 2024. Some of this recovery stems from a better-than-expected performance in retail and logistics, along with steady hiring across the service sector. By September, sentiment readings showed the most positive outlook since late 2023, although still below the long-term average.
Across Europe, however, confidence levels remain subdued, with the eurozone’s overall business climate continuing to weaken as manufacturers contend with slow global trade and cost pressures. Spanish firms have so far shown greater resilience than many of their European counterparts, thanks to stronger domestic consumption and government investment in infrastructure and green transition projects.
Analysts note that Spanish businesses are still navigating a delicate balance between optimism and restraint. Many expect conditions to remain stable rather than expand rapidly through the end of the year. The ability of companies to sustain hiring and investment will depend on whether inflation stays under control and whether international demand stabilises in early 2026.
For now, the general sentiment in Spain’s boardrooms and factory floors is one of steady patience — a recognition that while growth may be limited, the country’s economy has weathered recent challenges with more strength than expected.
Source: INE
