72.7% of Entrepreneurs in the Balearic Islands are negative about Spain’s third quarter prospects, making them the most pessimistic in the country, according to the National Statistics Institute.
The INE estimates that the Business Confidence Index, or ICEA, has fallen by 3.6% in the Balearic Islands compared to the previous quarter, making it the third largest decline in Spain.
Only 3.5% of Business Managers in the Islands are positive about third quarter trade, 72.7% are negative and the rest believe business will be normal.
The National Index remains unchanged after the 26.9% collapse recorded in the second quarter and at 95.5 points is the lowest value in history.
The Transport & Hospitality Sector has the lowest expectations and size-wise, small businesses with less than 10 employees are more concerned about the situation.
sConfidence is lowest in Autonomous Communitie, like the Balearic Islands and the Canary Islands where Tourism is a fundamental part of the economy.
In Spain as a whole, 7.7% of entrepreneurs are optimistic about third quarter prospects, 54.9% are pessimistic and 37.4% believe it will be normal.
That leaves a balance of expectation of -47.2 points, compared to -72 points in the previous quarter, which is also a historic low.
In three of the five Sectors analysed business confidence had decreased compared to the previous quarter with the biggest drop of 4.7% in Transport & Hospitality and the biggest increase of 7% in Trade.
By region, business confidence increased for the third quarter in 10 Autonomous Communities compared to the second quarter and decreased in the other 7.
The largest increases in business confidence were 9.5% in Extremadura, 5.5% in Asturias and 3.7% in Cantabria.
The biggest drops in business confidence were 4% in Madrid and Galicia and 4.6% in the Balearic Islands.
Business confidence in the second quarter, during the coronavirus lockdown dropped by 62.8 points, which was better than forecast.
The INE data for third quarter forecasts was collected between June 15 and July 6 after the State of Emergency ended, whereas information for the second quarter was collected during the coronavirus lockdown.
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