Slight rebound 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, according to the Canary Islands Institute of Statistics (ISTAC). The Harmonized Business Confidence Index (ICEA) reached 134.5 points, which represents an increase of 0.3% 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 Canarian business managers consider that the progress of their business will be favorable in the next three months, while 15.0% anticipate an unfavorable result. This difference in opinions, called balance of expectations, stands at 9.0 points, improving on the 4.1 points of the previous quarter.
First trimester evaluation
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 progress of their business during this period, while 15.0% have had an unfavorable opinion. The balance sheet, which reflects this difference, stands at 15.0 points, worse than the 19.0 points of the previous quarter.
Differences by islands and sectors
Business confidence has not evolved uniformly on all islands or in all sectors of activity. By island, increases have been observed in Fuerteventura (6.0%), El Hierro (3.0%), La Palma (2.3%) and Lanzarote (0.2%). On the contrary, decreases have been recorded in La Gomera (-5.2%), Tenerife (-1.4%) and Gran Canaria (-0.4%).
In terms of sectors, construction has experienced the largest increase in confidence (3.3%), followed by industry (0.9%) and transport and hospitality (0.6%). On the other hand, falls have been observed in other services (-1.0%) and in commerce (-0.9%).
In general, ISTAC data point to 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 that of a few months ago.
For more information, consult the ISTAC:
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