Slight increase in business confidence in the Canary Islands: sign of recovery or mirage?
Business confidence in the Canary Islands experienced a slight increase in the second quarter of 2024, as reported by the Canary Islands Institute of Statistics (ISTAC). The Harmonized Business Confidence Index (ICEA) reached 134.5 points, representing a 0.3% increase compared to the previous quarter.
Improvement in expectations for the second quarter
Entrepreneurs’ expectations for the second quarter of 2024 are more positive than in the previous quarter. 24.0% of Canary Islands business managers believe that their business will perform favorably in the next three months, while 15.0% anticipate unfavorable results. This difference in opinions, referred to as the expectations balance, stands at 9.0 points, an improvement over the 4.1 points from the previous quarter.
Evaluation of the first quarter
Regarding the evaluation of the first quarter of 2024, the perception is less favorable. 30.0% of managers have had a positive opinion about the performance of their business during this period, while 15.0% have expressed unfavorable opinions. The situation balance, reflecting this difference, stands at 15.0 points, worsening from the 19.0 points of the previous quarter.
Differences by islands and sectors
Business confidence has not evolved uniformly across all islands or in all sectors of activity. By islands, increases have been observed in Fuerteventura (6.0%), El Hierro (3.0%), La Palma (2.3%), and Lanzarote (0.2%). Conversely, declines have been recorded in La Gomera (-5.2%), Tenerife (-1.4%), and Gran Canaria (-0.4%).
Regarding sectors, construction has experienced the highest increase in confidence (3.3%), followed by industry (0.9%) and transportation and hospitality (0.6%). On the other hand, declines have been observed in other services (-1.0%) and in commerce (-0.9%).
Overall, ISTAC’s data suggests a slight recovery in business confidence in the Canary Islands in the second quarter of 2024, although the perception of the current situation remains less positive than it was a few months ago.
For more information, please refer to ISTAC’s publication.