2025/Q1 Article 06. The Banco de España Business Activity Survey: 2025 Q1

2025/Q1 Article 06. The Banco de España Business Activity Survey: 2025 Q1

Series: Economic Bulletin.

Author: Alejandro Fernández Cerezo and Mario Izquierdo

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2025/Q1 Article 06. The Banco de España Business Activity Survey: 2025 Q1 (394 KB)

Abstract

Rationale

The Banco de España Business Activity Survey (EBAE) provides highly valuable, real-time information on a broad sample of Spanish firms’ turnover, employment, costs and prices. This is particularly helpful for diagnosing current economic developments.

Takeaways

  • Firms perceived that turnover has remained stable during 2025 Q1, with a positive outlook for Q2.
  • Inflationary pressures have increased in Q1, both in terms of input costs and selling prices, affecting expectations for the coming year. In parallel to the disinflation process in the Spanish economy, a growing percentage of firms stated that they use expected inflation (rather than past inflation) as a benchmark for setting wages.
  • Firms’ concern about energy costs is mounting and uncertainty about economic policy remains a negative factor for a large proportion of firms. However, the share of firms affected by rising borrowing costs has continued to decline.
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