The Spanish industry is making progress in its recovery after the accumulated losses due to the covid-19 pandemic. The Industrial Production Index has grown 3.6% in August compared to the same month of the previous year, three points more than the advance registered in July. With this increase, the annual rate of industrial production chains six consecutive months of growth, although the increases in August and July have been the lowest in this period, according to data published this Wednesday by the National Statistics Index (INE).
Adjusted for seasonal and calendar effects, the annual rate has registered a growth of 1.8%, which represents a decrease of 1.5% in relation to the same data in July. By sectors, the most notable year-on-year advances have involved intermediate goods (7.2%) and non-durable consumer goods (6.2%). On the contrary, energy production suffered a collapse of 3.2%. The manufacture of clothing, the wood and cork industry, metallurgy and the paper industry stand out among the branches that have increased their production the most compared to August 2020. However, the extractive, the textile and the graph are those that have suffered the most in the same period.
In monthly terms, capital goods and energy are the sectors that have presented the most positive rates, 3.2% and 0.6% respectively. On the contrary, there have been decreases in the production of intermediate goods (-1%) and non-durable consumer goods (-0.2%). Among the branches of activities that have shown the most notable monthly growth are the manufacture of clothing (+ 33.5%), the wood and cork industry (+ 21.7%) and the manufacture of motor vehicles (+ 10.8%). At the other extreme, the largest monthly declines were related to other extractive industries (-32.7%), the manufacture of pharmaceutical products (-19.2%) and the extraction of anthracite, coal and lignite (-14.7 %).
Industrial production has increased in its interannual variation in 13 autonomous communities and has decreased in another four. The largest increases were recorded in the Principality of Asturias (17.4%), the Balearic Islands (13.6%), the Basque Country (12.3%) and Catalonia (7.9%). On the other hand, the highest decreases have affected Andalusia (-6.8%), Aragon (-5.6%), Navarra (-4%) and Murcia (-1.1%).
German orders drop
Bad news comes from Berlin that affects the recovery of the industrial sector. New orders from German industry registered a 7.7% decline in August compared to the previous month, when they had increased by 4.9%, as reported by the Federal Statistical Office (Destatis). Compared to August 2020, industrial sales have risen 11.7%, a growth that is far from the year-on-year increase of 26.1% recorded in July.
German car companies are struggling to cope with an increase in demand after the pandemic at the beginning of the year, due to the lack of microchips and other intermediate products that is holding back the recovery of the largest European economy. According to Bankhaus Lampe economist Alexander Krueger in statements collected by Reuters, problems in the supply chain prevent the processing of orders. “With no relief of supply bottlenecks in sight, the industry will continue to be a drag on growth in the fourth quarter,” the expert warned.