Spanish Industry Contracted Most in Eight Months in October
Output at factories, refineries and mines declined 1.9 percent from a year earlier, adjusting for the number of working days, after contracting a revised 1.6 percent in September, the National Statistics Institute said today in an e-mailed statement from Madrid.
Spain’s economy stagnated in the third quarter as austerity measures aimed at taming a surge in borrowing costs undermined the recovery from the almost two-year recession. The government is implementing the deepest budget cuts in at least three decades to pare the euro region’s third-largest deficit by half in two years, even as unemployment remains the highest in Europe at more than 20 percent.
Spanish gross domestic product will contract 0.3 percent this year and expand 1.3 percent in 2011, according to the government’s forecasts. The Organization for Economic Cooperation and Development sees a 0.2 percent contraction this year and 0.9 percent growth in 2011.
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