Spanish industrial output up in July

Spanish industry continued to recover in July across all sectors, although output remained down on the year.

Industrial output fell by 6.4pc in July from a year earlier, statistics institute INE said on 11 September, slowing from June's 9.4pc drop.

Spain's Covid-19 lockdown ended on 21 June, so July was the first full month without any lockdown restrictions in place.

Output was up from June in all industrial sectors. Consumer durables output rose most sharply, by 14.2pc, followed by intermediate goods (11.6pc) and the energy sector (7.3pc).

But output from all sectors continued to fall on the year, led by equipment goods, where production was down by 12.6pc.

Industrial output was down on the year across Spain, with the sharpest falls in the Balearic Islands, down by 24.2pc, followed by La Rioja (18.4pc) and the Canary Islands (15.9pc).

Weak industrial activity continued to cut into gas demand, with industrial gas consumption dropping in July to 16.1TWh from 17.1TWh a year earlier.

And industrial output might have fallen again in August. Industrial gas burn fell last month from July and held much closer to lockdown levels than in July, partly reflecting the summer holiday period.

The profile of Spain's industrial recovery could depend on Covid-19's progression, with cases up sharply recently. Cases had reached 566,000 this morning, the highest in Europe.

The country had already been expected to register one of the eurozone's sharpest GDP contractions this year. Renewed lockdowns could weigh further on industrial output in the coming months.

By Silvia Fernandez Martinez