Industrial production in Spain surged by 2.1% year-on-year in December 2024, rebounding strongly after a modest 0.1% decrease in the prior month and surpassing market estimates of a 0.5% recovery.
The impressive output growth was primarily driven by the consumer goods sector, which saw a robust 3.2% increase, compared to just 0.9% growth in November.Within this category, non-durable goods led the way with a 3.9% rise, up from a more modest 0.8% in November, reflecting a solid demand for everyday products. Additionally, the intermediate goods sector also performed well, posting a 2.6% increase compared to 0.7% in the previous month, signaling healthy industrial activity in manufacturing inputs.
Capital goods increase
Moreover, the capital goods sector, which includes machinery and equipment, showed a recovery with a 0.8% increase, reversing the previous month's 3.1% decline. This improvement suggests a resurgence in investment and production of long-term assets. The energy sector also contributed positively, with output rising by 0.5%, marking a recovery from a 1.5% drop in November, which could reflect stabilization in energy demand or production efficiency gains.
On a seasonally adjusted monthly basis, industrial output rose by 0.9% in December, following a revised 0.7% decline in November, signaling a stabilization in industrial activity towards the end of the year. This monthly increase, alongside the year-on-year growth, reflects the resilience of Spain’s industrial sector despite the challenges faced in earlier months.
Moderate but consistent growth
For the full year 2024, industrial production in Spain grew by an average of 0.7%, indicating moderate but consistent growth across various sectors. This performance signals a recovery from previous downturns and suggests a positive outlook for Spain's industrial economy as it navigates global economic uncertainties and internal challenges. The steady recovery in production, particularly in key sectors like consumer goods, intermediate goods, and capital goods, reflects a broad-based improvement in industrial output.
