Spain Industrial Production Drops for 11th Month Amid Recession
Spanish industrial production fell for an 11th straight month in July amid a second recession in the euro area’s fourth-largest economy since 2009 and increased budget cuts to curb the nation’s borrowing costs.
Output at factories, refineries and mines adjusted for the number of working days fell 5.4 percent from a year earlier, after declining a revised 6.1 percent in June, the National Statistics Institute in Madrid said in an e-mailed statement today.
Prime Minister Mariano Rajoy last month gave up on the prospect of an economic recovery next year as he increased to more than 150 billion euros ($190 billion) the amount of budget cuts and tax increases planned through 2014 to tackle the euro area’s third-largest budget gap.
Spain’s recession intensified in the second quarter, while unemployment reached 24.6 percent, the highest in the country’s 34 years of democratic history. Fomento de Construcciones & Contratas’ cement unit last month said it is in talks with unions to cut costs for an amount equivalent to three of its eight plants in Spain.
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