Industrial production in Spain, the euro-area’s fourth largest economy, dropped for the 13th straight month in September amid a deepening recession that’s left a quarter of the workforce jobless.
Output at factories, refineries and mines adjusted for the number of working days fell 7 percent from a year earlier, after declining a revised 2.5 percent in August, the National Statistics Institute in Madrid said in an e-mailed statement today. That’s the most since April. Economists forecast a drop of 3.5 percent, according to the median of seven estimates in a Bloomberg News survey.
Spanish Prime Minister Mariano Rajoy, who is implementing the toughest budget cuts in the country’s democratic history, said on Nov. 6 he doesn’t expect the economy to recover from its second recession since 2009 before 2014. Borrowing costs have surged after Spain’s budget deficit ballooned to the second-largest in the euro area last year, tailing Ireland’s and matching Greece’s.
Acerinox SA, Spain’s largest steelmaker, reported its first loss this year in the third quarter, saying economic uncertainty weighed on demand. Schneider Electric SA, the world’s biggest maker of low- and medium-voltage equipment, cut its target for 2012 revenue as sales posted a “strong double-digit” decline in Spain and dropped in Western Europe.
Spanish unemployment rose to 25.8 percent in September, the most since at least 1976 and the highest in the 17-nation single-currency bloc.
In unadjusted terms, industrial production declined 11.7 percent in September from a year earlier after a 2.5 percent drop in August.