Banco de España Business Activity Survey: 2024 Q2

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, and the constraints on their activity. This is particularly helpful for diagnosing current economic developments. Takeaways •Firms have perceived a pronounced increase in turnover in 2024 Q2, after reporting declines in the previous three quarters, although there continues to be high cross-sector heterogeneity. •Inflationary pressures have eased in Q2, in terms of both the cost of inputs and selling prices and labour costs. Firms expect this easing of inflationary pressures to continue one year ahead. •Business activity has benefited from a decrease in the adverse impact of the constraints, although concerns over labour shortages and economic policy uncertainty remain high.