Despite the increase of consumer confidence in Spain, analysts still are not so optimistic about Economic situation. The growth in consumer confidence could be the sing that decline in GDP and private consumption will be not so aggressive in the coming quarters and the positive indicator shows the reasonable fiscal measures implemented by government.

The jump in consumer confidence is a reflection of positive fiscal measures launched by the government

Spanish interest rate encourages consumer confidence

It might be the worst recession that Spain has seen in years, but Spaniards seem ready to party. Consumer confidence rose to a 13-month high as unemployment claims eased, though analysts warn the worst is not over for the European nation.

ICO said in a statement after the first year-on-year rise in the index since the financial crisis began in summer 2007. "The growth in the confidence indicator suggests the fall in gross domestic product and private consumption will be less acute in the coming quarters," The ICO data mirrored jumps in consumer confidence in the United States and the wider euro zone and the state agency saw it continuing to slowly improve in the next months.

The jump in consumer confidence is a reflection of positive fiscal measures launched by the government. "We have seen a lot of fiscal policies being implemented by the government, about 50 billion euros in fiscal stimulus measures, interests rates have fallen to record lows and there has been a notable reduction in inflation," said Raj Badiani, an analyst with Global Insight in London.

Inflation has dropped to -0.2% in April 2009 compared with a 4.2% rise during the same period last year. "Due to falling inflation and a huge drop in energy and food prices, people with a relatevely secure job are getting good news," Badiani added.

Unemployment in May saw a year-on-year increase of 53.81% but a 0.68% drop month-on-month, according to the country's National Institute of Statistics.

Economists have said Spain's recession "Government measures have had an impact on gross domestic product but this doesn't mark a change of trend".