Spain: Business confidence drops in January
January 25, 2011
In January, the quarterly business confidence index (ICE, Indicador de Confianza Empresarial) published by the Association of Chambers of Commerce (Consejo Superior de Camaras de Comercio) dropped from minus 17.3 points recorded in October to minus 20.5 points. With the January drop, the index fell further below the 0-point threshold that separates optimistic from pessimistic territory. Nonetheless, business sentiment remains above the April 2009 trough, when the index fell to minus 27.6 points. The deterioration in business confidence was the result of a steep decline in the expectations sub-index for the next three months (January-March), which dropped from minus 13.2 points in October to minus 20.1 points in January amid worsening perceptions regarding future business prospects and unemployment.