Spain industrial output suffers record fall

9th January 2009, Comments 0 comments

Spanish industrial output of 15.1 percent in November compared with the same month a year ago shows the biggest drop in 15 years.

MADRID – Spanish industrial output plunged 15.1 percent in November on a 12-month basis, the biggest drop for at least 15 years, as the once booming economy slumps toward recession, official figures showed on Friday.

It was the eighth straight month of declining output, and follows a slide of 12.8 percent in October, the National Statistics Institute (INE) said.

It was also the biggest drop since the INE began calculating industrial production using its current method in 1993.

Over the first 11 months of the year, industrial production declined 5.8 percent.

Output of capital goods in November fell 16 percent and intermediate goods, or those purchased for resale or for use in producing final goods for consumers, slid 23.7 percent, according to the INE's seasonally adjusted figures. Consumer goods were down 9.4 percent, and energy 2.6 percent.

Motor vehicle production fell 39.3 percent from November 2007.

Spain's auto sector, the third biggest in Europe, has been badly hit by the economic slowdown, and many automakers in the country have announced staff cutbacks.

Spain's economy, long an engine of growth and job creation in the eurozone, is on the verge of recession as the global financial crisis has hit the key construction sector, which was already weakened by oversupply and rising interest rates.

The Spanish economy contracted for the first time since 1993 in the third quarter, shrinking 0.2 percent.

[AFP / Expatica]

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