Confidence levels among consumers escalate
The economic climate in Spain has shown a period of stability in July, as indicated by the Economic Climate Indicator. However, this does not directly impact the Consumer Confidence Indicator, which is a separate economic measure [1].
The Consumer Confidence Indicator, derived from the Business and Consumer Surveys conducted by the National Statistics Institute (INE), has shown recent fluctuations. After a notable rebound in May 2025, consumer confidence declined sharply in June, reaching its lowest level since October 2023 [1][2].
The evolution of the Consumer Confidence Indicator is influenced by various perspectives, including the household's financial situation and the country's economic situation. In May, improved household expectations led to a rise in the household financial situation index, contributing to the increase in consumer confidence [1]. Similarly, perceptions of the current economic situation also strengthened in May, adding to the positive influence [1][2].
One significant factor influencing the Consumer Confidence Indicator is the family's major purchase plans. Households' willingness to spend and overall economic optimism are reflected in these plans, with recent values hovering below the long-term average, indicating guarded attitudes towards significant expenditures [3].
Despite the decline in consumer confidence in June, economic indicators suggest moderate optimism for the broader economy. The Conference Board's Leading Economic Index (LEI) for Spain increased slightly in May 2025, signalling expected economic expansion in 2025, despite some investment weaknesses in certain sectors [4].
The stabilization of the Economic Climate Indicator in July does not necessarily indicate a negative trend in consumer confidence, as confidence indicators in manufacturing and commerce increased during this period, while those in services and construction decreased [1][2].
In summary, Spain’s consumer confidence has shown recent volatility, improving in May but declining again in June 2025. This pattern reflects changes in household financial perceptions, assessments of the wider economic environment, and cautiousness about major family purchases, all intertwined within a broader context of expected moderate economic growth [1][2][3][4].
[1] National Statistics Institute (INE), Business and Consumer Surveys, [accessed 1 August 2025] [2] El País, "Spanish consumer confidence plunges in June," 1 July 2025, [accessed 1 August 2025] [3] Bank of Spain, "Consumer Confidence Indicator," [accessed 1 August 2025] [4] The Conference Board, "Leading Economic Index for Spain," [accessed 1 August 2025]
Businesses closely monitor the Consumer Confidence Indicator, as it provides insights into household spending habits, which can impact business finance. The evolution of the Consumer Confidence Indicator is influenced by various factors, including the household's financial situation, the overall economic situation, and major purchase plans.
