Recent economic performance of Spanish SMEs and developments in their access to external financing according to the ECB’s half-yearly survey

Rationale: In recent years the Spanish business sector has experienced unprecedented shocks: the onset of the pandemic, supply chain bottlenecks and escalating commodity prices. In this setting, it is important to assess the sector’s economic and financial situation. Takeaways •Between April and September 2022, the recovery in activity recorded in the previous two six-month periods continued for Spanish SMEs. However, higher production costs meant that profits declined at the majority of the firms surveyed. •For the first time since 2013, the survey signals a deterioration in the availability of bank financing. •In any event, despite rising slightly, the indicator of obstacles to obtaining bank loans remains at historically low levels.