Business confidence in Spain drops sharply to lowest since February 2013Staff Writer | November 21, 2018
The latest IHS Markit Business Outlook survey signals a considerable reduction of confidence among Spanish companies in October.
Europe Political uncertainty, both at home and abroad
At +23%, the October 2018 Business Activity was down sharply from June’s reading of +35% and indicates the weakest degree of confidence about the future since early 2013.
The fall in sentiment is sufficiently sharp to take it below the eurozone average and the lowest of all European nations covered by the survey.
Since the summer of last year, the headline net balance has more than halved.
Downturns in confidence are signalled across both the manufacturing and service sectors when compared to the summer.
Both categories record net balances for business activity of +23%, with confidence in manufacturing the lowest since October 2012 and in services the weakest since February 2013.
Similar trends to activity are seen for both new business (+21%) and revenues (+19%), with panellists indicating concerns around the recent global and European economic slowdown.
Political instability, both at home and abroad, and worries over rising cost pressures, especially related to labour given proposed changes to the minimum wage, were also reported. ■