Spanish industrial production (IPI) looks to be falling off a cliff with the latest data just released showing that the annual rate of the IPI, adjusted for the calendar effect, stood at –7.2% in November 2012, as compared with –3.1% in October 2012. Durable consumer goods and capital goods sales have been hit particularly hard as the recession and growing unemployment issue has hit consumer and corporate spending on higher value items.
Plenty for Mario Draghi and the Spanish government to worry about and the key question remains is how is the country going to drag itself out of this downward spiral, particularly given the ongoing move down in house prices which continues to have a devastating effect on many ordinary Spanish families.
Contrarian Investor UK