Spanish Industrial Production: Decline in Mining and Leather Sectors Impact Economy

2023-08-04 07:10:10

Spanish industrial production fell once more in June, due to a sharp decline in activity in the mining sector and in the leather industry, the National Institute of Statistics (INE) announced on Friday. According to data adjusted for seasonal and calendar variations from the INE, production fell 1% over one month, following falling 2.1% in April and then rebounding 0.5% in May.

Compared to June 2022, industrial production – which has been seeing an ups and downs for several months – is down 3%, excluding seasonal effects. According to the INE, production was penalized by a sharp drop in activity in the mining sector, in particular the extraction of anthracite, hard coal and lignite (-38% over one month), and by poor results. in the leather industry (-6%). This development was partly offset by good results in materials and electrical equipment (+4.1%) and in the manufacture of computer, electronic and optical products (+5.7%).

Industrial production is being closely watched because of its impact on economic growth, which according to the INE reached 0.4% in Spain in the second quarter, following 0.5% between January and March. For 2023 as a whole, the IMF forecasts growth of 2.5%, one of the highest figures in the euro zone. The Spanish government, for its part, forecasts a 2.1% increase in GDP.

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