Confidence of consumers increases
Consumer confidence in Spain has shown some signs of recovery, although it remains slightly below the long-term average index of 100, according to the latest data available in mid-2025. The Consumer Confidence Index (CCI) stood at 99.7 points in August 2024, marking a marginal improvement from the downward trend observed after August 2021, when it fell to 94.31 points.
The CCI is a reflection of households' perceptions based on their current financial situation, the country’s economic outlook, and plans for major purchases. The index captures qualitative differences between positive and negative consumer sentiments relative to a "normal" economic state.
The consumer confidence trend in Spain is influenced by several factors. Household financial situation and their propensity for major purchases are key components, affecting how optimistic or pessimistic consumers feel. The country’s economic situation has seen positive signals in 2025, with the Conference Board Leading Economic Index (LEI) for Spain rising by 0.3% in May 2025, signaling an ongoing economic expansion. The GDP is projected to grow 2.4% in 2025, though somewhat slower than 3.2% in 2024.
However, some uncertainty remains due to political, fiscal, and trade risks, which may moderate consumer optimism. Inflation and producer prices, which impact cost of living and purchasing power, have shown moderate increases recently, with inflation running around 2.7% year-over-year as of July 2025. Such inflationary pressures can dampen consumer confidence and affect families’ ability to make major purchases.
Despite these challenges, there have been positive developments. The consumer confidence indicator evolved positively in July based on the results of surveys conducted by the National Statistics Institute (INE). The economic climate indicator stabilized in July, and both the manufacturing and commerce sectors experienced an increase in confidence indicators. However, the services and construction sectors, as well as public works and construction, experienced a decrease.
In summary, consumer confidence in Spain is nearing its long-term average following a period of weakness since 2021. This trend is shaped by improvements in the national economy indicated by leading indexes, tempered by inflation and economic uncertainties affecting household finances and buying plans. The stabilization of the economic climate indicator in July was not due to positive contributions from perspectives on the future evolution of the country's economic situation, but rather from positive contributions from perspectives on the future evolution of the household's financial situation and the making of major purchases by families.
- The Consumer Confidence Index (CCI) mirrors households' perceptions, including their current financial situation and future plans for major purchases, which are key components of consumer confidence.
- The country’s economic state, as reflected in the CCI, is largely affected by factors such as inflation, economic uncertainties, and the state of the national economy, as indicated by leading indexes like the Conference Board Leading Economic Index (LEI) and the projected GDP growth.
