Industrial production in Spain rose by 1% year-on-year in March 2025, marking a notable rebound from the 1.9% contraction recorded in February and ending a two-month streak of annual declines.
Spain industrial output rebounds in March
The turnaround was primarily driven by a sharp acceleration in energy output, which surged by 6.8% compared to a modest 0.6% increase in the previous month, reflecting increased demand and possibly more favorable weather or pricing conditions that boosted generation and consumption.
Further support came from a recovery in capital goods output, which inched up by 0.1% after a steep 4.3% drop in February. This slight improvement, though still modest, hints at a gradual revival in investment-related manufacturing activity. Intermediate goods production also bounced back, rising 1.1% year-on-year after declining 0.4% in the previous month, suggesting some stabilization in the broader supply chain and potential improvement in manufacturing sentiment.
Conversely, consumer goods production remained under pressure, falling 1.7% after a 2.2% drop in February. The contraction was primarily driven by non-durable goods, which slipped 1.2%, continuing a trend of weak household demand amid elevated inflation and stagnant wage growth. Durable goods production, while not specifically broken out, likely remained subdued, reflecting consumer hesitancy in committing to big-ticket purchases amid ongoing economic uncertainty.
Calendar-adjusted figures
On a seasonally and calendar-adjusted monthly basis, industrial output rose 0.9% in March, following a 0.7% gain in February, indicating that momentum may be building in the short term. This sequential improvement suggests that the sector could be stabilizing after a sluggish winter period, although overall output levels remain below pre-pandemic averages.
Looking ahead, analysts caution that while March’s data is encouraging, challenges persist. High energy costs, weak external demand—particularly from key European trading partners—and uncertainty tied to global supply chains could continue to weigh on Spain’s industrial sector. However, potential tailwinds include falling inflation, the rollout of EU-funded infrastructure projects, and a possible rebound in tourism-related manufacturing, which could support further gains in the coming months.
