Spanish companies report reduced impact from Iran conflict

According to the Bank of Spain's Business Activity Survey (EBAE), Spanish companies perceived a lower impact from the conflict in Iran on both international and domestic demand during the third quarter.

The proportion of companies reporting negative effects on international demand fell to 27.8% from 30.3% in the second quarter, while the impact on domestic demand decreased to 33.7% from 36.5%. Additionally, the percentage of firms citing negative effects on investment decisions due to increased uncertainty dropped slightly to 40.9% from 43.2% in the previous quarter.

While seasonal patterns suggest a decrease in turnover for the third quarter, seasonally adjusted data shows a slight increase in turnover, aligning with expansionary signals from the composite PMI indicator. Sectoral performance was mixed, with growth in hospitality, information, communications, and administrative services, while agriculture and professional, scientific, and technical activities saw declines. Employment showed a slight increase compared to the previous quarter.