1/11/2012 3:47 AM ET
(RTTNews) - Spain's industrial production fell at the fastest pace in 26 months in November, adding to evidence that the economy contracted in the final quarter of last year.
Industrial production dropped a working-day adjusted 7 percent year-on-year, after falling 4.2 percent in October, which was revised from 4 percent, data from the statistical office INE showed. Economists had forecast production to decline 5.4 percent in November.
The latest decline was the worse since October 2009, when production tumbled 9.1 percent. Industrial output fell for the third month in a row, after stagnating in August.
A 16.3 percent plunge in the manufacture of consumer durables led the decline in overall industrial production. Non-durables output fell 2.8 percent. Consumer goods production dropped 4.4 percent.
Production of capital goods was down 7.4 percent, while manufacture of intermediate goods fell 10 percent. Energy output decreased 5.2 percent.
During the January to November period, industrial production fell 1.3 percent from a year ago.
On an unadjusted basis, industrial production dropped 7 percent annually in November, following a 4.5 percent decline in the previous month. Manufacturing recorded a 6.9 percent slump, while mining and quarrying output declined 15.6 percent.
The latest Purchasing Managers' survey by Markit Economics showed that manufacturing sector deteriorated at a substantial pace in December due to declines in production and new business. Employment in the sector decreased again in December, while input costs dropped for a third month on weaker demand.
Unemployment rose for a fifth consecutive month in December, the Labor Ministry reported on January 3. The number of unemployed totaled 4.42 million during the month, with the jobless figure rising by 9,304 in the industrial sector. In 2011, unemployment increased by 322,286 or 7.86 percent.
The Spanish economy contracted in the last three months of the year amid deteriorating global growth prospects and high tensions in the European financial markets, the Bank of Spain said on December 29. The economy had stagnated in the third quarter after a 0.2 percent growth in the previous three months.
by RTT Staff Writer
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