INE reports 'pessimistic outlook' for economy

Spain's Nation Institue of Statistics (INE) yesterday released data showing how the country's confidence in the economy has continued to slide, falling 2.7 points to reach 68.3 in January of 2012.

100 points on the scale indicates that the nations feels 'positive' about the economy.

The report went on paint a bleak picture of how the economy is effecting everyday lives, with 57.6% of Spaniards reporting how they are struggling to get to the end of the month or are being forced to rely on their saving, while a further 6.3% have been forced to extend their debts to cover their monthly bills.

Nor does the future look any better, with 70% of those participating in the survey reporting how they expect the wider economy and their personal financial circumstances to worsen over the course of the next six months.

The increase in prices, the freeze on salaries and the continuing growth of unemployment are the main reasons for such a grim outlook.