The Banco de España Business Activity Survey: 2025 Q2

Rationale The Banco de España Business Activity Survey (EBAE) provides highly valuable, real-time information on a broad sample of Spanish firms’ turnover, employment, costs and prices. This helps to diagnose current economic developments. This edition included a specific module on the potential impact of US tariff policy on Spanish firms and the strategies they plan to implement in response. Takeaways •Firms reported a slight decline in turnover in Q2 (in seasonally adjusted terms), against the backdrop of high uncertainty. •Nearly 30% of Spanish firms reported being adversely affected by the tariff war, although these effects were mainly through indirect channels associated with heightened uncertainty and lower global economic activity. •More than 45% of the affected firms reported that they planned to pass through the increase in costs arising from the new tariffs to their selling prices. Meanwhile, 34% plan to diversify their supply chain by seeking suppliers in other countries and 28% intend to open new markets abroad.