Confidence in the economy bounces back to 2019 – except in services

Optimism and confidence in trade, industry, manufacturing and construction have bounced back to 2019 levels according to the ‘Consumer and Companies Surveys into the Economic Situation from the National Statistics Institute (INE).

The surveys, which look into the economic climate and levels of consumer and company confidence saw overall indicators increase in November, continuing an upward trend seen since April.

However, the surveys, which were published on Thursday, noted that consumer confidence had fallen after months of increases. Confidence in the services sector had also fallen.

“The trade confidence indicator has increased in the last five months, reflecting the positive contributions of all components, the company’s activity outlook, opinions on sales volume and stock assessments,” said the INE.

“We have to go back to January 2022 to get an identical value”. The statistical institute adds that the confidence indicator in the manufacturing industry also increased, after having decreased in the previous month, “reflecting the positive contribution of opinions on global demand and, significantly, of production prospects in the last month”. Despite being in negative territory, it is the highest value since March 2023.

In turn, in construction and public works the indicator increased slightly in October and November, reflecting the significant positive contribution of employment prospects based on stable order books.

“In the opposite direction, the confidence indicator in services had fallen over the last month as a result of the negative contribution of assessments on service company activity and prospects in terms of demand”, states the INE.