Spain: Industrial production growth eases notably in January
March 9, 2018
In January, industrial production dynamics moderated significantly on the back of a strong base effect in energy output. Factory production was up 1.2% from the same month of last year, well below the revised 5.8% expansion recorded in December (previously reported: +6.1% year-on-year). December’s figure had marked one of the highest prints in two decades. As a result of January’s weaker result, average industrial production eased from an over one-year high of 2.8% in December to 2.7% in January.
The soft print logged in January reflected a deceleration across most sub-components and a swing in energy production. Energy output contracted 5.9% year-on-year in seasonally- and calendar-adjusted terms, contrasting the 8.6% surge recorded in the previous month. Similarly, equipment and intermediate goods production was weaker compared with the previous month, while consumer output was steady at a 1.1% expansion on marginally stronger non-durable consumer good production and softer durable consumer good output.
On a month-on-month basis, adjusted for seasonal and calendar effects, factory output growth swung from a 1.1% expansion in December to a 2.6% contraction in January. It should also be noted that, beginning in January, the weights of the indicator were reassessed to give more importance to energy and equipment goods output.
Author: David Ampudia, Economist