Spain: Industrial production contracts at more moderate rate in September
November 5, 2010
In September, industrial production contracted 0.8% over the same month last year, which was less pronounced than the 3.4% drop registered in August. On a working-day adjusted basis, industrial output dropped 1.4% year-on-year, contrasting the 1.6% rise recorded in August (previously reported: +1.4% year-on-year) and market expectations, which had anticipated industrial output adding 0.8%. The September contraction was driven by a fall in manufacturing output and by slower growth in mining. Electricity, gas, steam and air conditioning continued to grow at the same pace as in August. On a use-based classification, declining output of durable and capital goods were the main drivers behind the September contraction. Intermediate goods production, in contrast, expanded over the same month last year. Despite the monthly contraction, the trend continues to improve, with the annual average variation in industrial production stepping up from minus 2.0% in August to minus 0.9% in September.