Spain’s Industrial Production Surges as Recovery Presses Ahead

Spanish industrial production rose the most in more than five years, adding to a string of positive data as the economic recovery gains momentum.

Seasonally-adjusted output jumped an annual 4.5 percent in June, the most since March 2010, the National Statistics Institute in Madrid said Friday. That exceeded the median estimate in a Bloomberg News survey for a 3.8 percent increase. Industrial production rose 7.5 percent on a non-seasonally adjusted annual basis during the month, up from a revised 1.4 percent in May.

The rebound in the euro zone’s fourth-largest economy has been picking up speed, with growth accelerating to its fastest pace in eight years in the second quarter. Unemployment fell to the lowest level in almost four years in the quarter.

The improvement in the economy is helping Spanish industry and services gain strength. A gauge of services rose more than economists forecast in July and household confidence jumped to a record high.

After plunging to its worst economic recession, the Spanish economy is at the forefront of growth in the euro zone helped by a drop in energy prices, lower unemployment and improving financing conditions. The country is due to hold general elections before the end of the year, pitting incumbent Prime Minister Mariano Rajoy against left-wing rivals, the Socialists, and anti-austerity party Podemos.

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