Reindustrialization in Spain
There has been a slight improvement in the industrial sector in Spain:
- Industrial production in January increased 0.4% year-on-year (adjusted for seasonal effects and calendar), mainly thanks to the energy sector (+3.9%) and capital goods production (+1.1%) (Index of Industrial Production, INE).
- Investment in capital goods increased 10.3% year-on-year in the 4Q of 2014, reflecting a rise in confidence in the Spanish economy by Spanish and foreign businessmen.
- The Purchasing Managers Index (PMI) dropped to 54.2 (54.7 for January), but continues to be above 50, thus reflecting growth of the industrial sector. There has been an increase in new orders, the largest since the crisis began.
- In 2014 industry recovered part of its share of the labour market, increasing from 13.6% of the total employment in 2013 to 13.9% (Labour Force Survey, INE).
- In addition, of the 96,909 new members of the Social Security system between January and February, 15,097 of them were in manufacturing. It was this sector –together with construction (+26,068) and education (+16,203)– that increased the most. In this same period, half of the reduction of the number of unemployed people was in industry (-6,535).
- In January the prices of industrial exports dropped a year-on-year average of 0.50% (INE), which helps make the Spanish economy more competitive.
