Spain’s Industrial Output Grows 0.4% in May 2024

Spain’s industrial output rose by 0.4% year-on-year in May 2024, following a revised 0.2% increase in the previous month, according to official data from the National Statistics Institute (INE).

Although the growth missed market expectations of a 1.4% increase, it still marks a positive trend in the country’s industrial sector.

What Drove the Industrial Output Growth?

The increase in industrial output was primarily driven by the following sectors:

  • Consumer goods: +5.3% (vs +3.5% in April)
    • Non-durable goods: +6.3% (vs +3.9% in April)
  • Capital goods: +3.1% (vs -1.4% in April)
  • Intermediate goods: +0.2% (vs -0.5% in April)

However, energy production continued to decline, falling by 4.7% compared to a 4.2% drop in the previous month.

How Does May’s Growth Compare to Previous Months?

Spain’s industrial output has experienced fluctuations in recent months:

Month Year-on-Year Change
March -1.2%
April 0.8%
May 0.4%

In March 2024, industrial output fell by 1.2% year-on-year, following a downwardly revised 1.3% increase in February. The decline was primarily due to a slowdown in consumer goods and intermediate goods production.

April 2024 saw a rebound, with industrial output rising by 0.8% year-on-year, matching market expectations and driven by growth in consumer goods, capital goods, and intermediate goods.

What Are the Implications for Spain’s Economy?

The modest growth in Spain’s industrial output in May 2024 suggests a gradual recovery in the country’s industrial sector. However, the missed market expectations and the ongoing decline in energy production indicate that challenges remain.

Spain’s economy has recorded average industrial production growth slightly below the Euro Area average in recent years. The Consensus Forecast from a panel of analysts projects Spain’s industrial production to trend around 1.70% in 2025.

However, the actual performance will depend on various factors, including global economic conditions, domestic demand, and government policies.

What Sectors Contribute to Spain’s Industrial Production?

Manufacturing is the most important sector in Spain’s industrial production, accounting for a significant portion of total output. The biggest segments within manufacturing include:

  • Food products
  • Fabricated metal products (except machinery and equipment)
  • Motor vehicles, trailers, and semi-trailers
  • Chemicals and chemical products
  • Other non-metallic mineral products
  • Rubber and plastic products
  • Machinery and equipment
  • Basic metals
  • Beverages

Other sectors contributing to Spain’s industrial production include electricity, gas, steam, and air conditioning; water supply, sewerage, waste management, and remediation; and mining and quarrying.

What Factors Could Influence Spain’s Industrial Output in the Future?

Several factors could impact Spain’s industrial output in the coming months and years:

  1. Global economic conditions: As a member of the European Union, Spain’s industrial sector is influenced by the economic performance of its trading partners and the overall global economy.
  2. Domestic demand: Consumer spending and business investment within Spain can affect the demand for industrial goods and, consequently, industrial output.
  3. Government policies: Initiatives to support the industrial sector, such as incentives for innovation, infrastructure development, and skill development, can contribute to the growth of industrial output.
  4. Energy transition: As Spain works towards a more sustainable energy mix, the transition from traditional energy sources to renewable energy could impact the industrial sector, particularly energy-intensive industries.
  5. Technological advancements: The adoption of new technologies, such as automation, artificial intelligence, and the Internet of Things (IoT), can enhance productivity and efficiency in the industrial sector, potentially boosting output.


Spain’s industrial output growth of 0.4% year-on-year in May 2024 indicates a gradual recovery in the country’s industrial sector. While the growth missed market expectations, it still represents a positive trend, driven by increases in consumer goods, capital goods, and intermediate goods production.

However, the ongoing decline in energy production and the challenges posed by global economic conditions and domestic factors underscore the need for continued efforts to support and strengthen Spain’s industrial sector.

As the country navigates the path to economic recovery, policymakers, businesses, and investors will need to closely monitor industrial output trends and adapt strategies accordingly to ensure sustainable growth and competitiveness in the long term.

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