Spanish industry collapses as German factories bounce back

Ben Southwood
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INDUSTRIAL production crashed in Spain, over the year to December, but recovered in Germany during the same month.

Spanish industry produced 8.5 per cent less in December than it did a year before, according to data put out by its official statistical body, INE, yesterday. This was worse than November, when production was down seven per cent compared to the year before.

By contrast, Eurozone economic powerhouse Germany managed to increase its industrial output during the final month of 2012, despite a decline in November, and despite the crushing Eurozone crisis.

Output was up 0.3 per cent over the month, Destatis revealed yesterday – equivalent to a 3.7 per cent expansion if extended over a year – a turnaround after the 0.2 per cent decline suffered the month before.

However, the construction sector was not faring as well, with a monthly decline plummeting some 8.9 per cent in just a month – a figure which would amount to 178.2 per cent if it were stated in annualised terms, as is commonly used for US statistics.