Spain: Industrial production continues to contract
October 5, 2012
In August, industrial production dropped 3.1% over the same month last year, which represented a deterioration compared to the revised 2.7% contraction observed in July (previously reported: -2.6% year-on-year). With this result, industrial output has now declined during 12 consecutive months. The monthly drop was driven by a sharper contraction in manufacturing, whereas mining as well as electricity and gas production improved over the previous month. On a working day adjusted basis, industrial output fell 3.2%. The decline undershot both the revised 5.5% drop recorded in July (previously reported: -5.4% yoy) as well as market expectations of a 5.5% contraction. As a result of the larger contraction in August, the downward trend initiated at the beginning of 2011 and which was only briefly interrupted in July, resumed in August, with annual average growth in industrial production dropping from minus 4.9% in July to minus 5.2% in August.