Spain’s commercial framework is holding steady as the year moves forward, with early signals pointing to resilience in the middle of 2025. Across Europe, a slowdown is anticipated, yet Spain’s retail sector shows notable strength. Eurostat, the statistical office of the European Commission, reports that Spain recorded its strongest retail sales performance in years in June, even as the broader European Union average declined. This contrast underscores Spain’s distinct momentum within the euro area and highlights the country’s position among Europe’s major economies.
In June, the retail sales index in Spain rose 7.5 percent year over year, a robust surge across many product categories such as clothing, food and beverages, tobacco, furniture, and vehicles. By comparison, the EU average fell by 1.6 percent and the euro area slipped by 1.4 percent. Among the member states outside the euro area, Bulgaria, the Czech Republic, Denmark, Hungary, Romania, and Sweden also faced declines, reflecting the mixed regional landscape. Germany and France contributed positively to the overall European picture, with Germany showing a noticeable uptick and France lifting its performance, while the pandemic-era advantages seen in Italy have faded from the recent highs.
Spanish officials responded positively to these developments. The Ministry of Industry, Trade and Tourism assessed the situation with optimism, noting that the sales momentum in the country indicates a healthy and dynamic domestic market that continues to improve month after month. The ministry’s summary highlighted that sales in June rose across all autonomous communities compared with the previous year. Balearic Islands led with a 14.4 percent increase, followed by Madrid at 11.7 percent and Catalonia at 8.4 percent. Overall, Spain recorded a 7.5 percent uplift in sales, while several larger European economies experienced declines.
Employment in the sector also reflected strength. Community-level data show a 2 percent rise in employment in June 2022, with smaller retail chains reporting a peak in employment around July, reaching approximately 1.9 million workers. Unemployment in the sector fell to about 5.6 percent in the most recent month, and the broader commercial fabric reached its lowest sustained level since a long-running series began in 2009, with around 248 thousand unemployed in the field.
Another important takeaway is the growing confidence among entrepreneurs and managers in this industry. The European Commission’s monthly confidence indicator, compiled and published by Eurostat, indicates that Spanish traders grew more optimistic by about 7.3 percent compared with the prior month, when the index had shown no change. This uptick in confidence stands in contrast to what is observed in several other large economies within the EU, where sentiment has remained subdued. In the broader European context, the overall EU confidence figure hovered around a modest 3.9 percent, while the eurozone and especially Germany and France showed more pessimistic readings throughout the year. Looking ahead, Italy, in particular, has shown a notable improvement, with commercial confidence rising by roughly 12.7 percent, and some southern and eastern European markets reporting confidence above 7 percent in Spain, Bulgaria, the Czech Republic, Greece, and Malta.
On the consumer side, improvements are evident but not yet enough to erase lingering concerns. The Brussels-based survey highlights that Spaniards continue to spend with caution, and negative expectations for consumption persist. In July, the consumer confidence balance remained in the negative territory, though less pronounced than in June, suggesting a subtle shift toward steadier consumption. This cautious tone is echoed across the EU’s major economies, though Spain’s sales and confidence metrics point to a more favorable trajectory compared with some peers. In sum, Spain’s retail performance in June showcases a robust domestic market supported by expanding employment, rising confidence, and a favorable comparative position within Europe, even as broader European demand softens and uncertainty persists across the continent.