Data released by the statistical office INE revealed that Spanish industrial production dropped at a slower pace in May 2012.

The calendar adjusted industrial production dropped by 6.1% YoY, following an 8.3% fall in April 2012. Economists had expected an 8.1% drop. The pace of decline slowed for the second straight month.

On an unadjusted basis, production fell 5.4% annually, after declining 8.2% in April 2012 and 10.5% in March 2012.

The latest purchasing managers' survey indicated that activity in the Spanish manufacturing sector deteriorated to the lowest level in more than three years in June 2012. The country is in the throes of a deepening recession as well as a debt crisis and has the highest jobless rate in the euro area.

Meanwhile, jobless claims declined for a third consecutive month and at a steep rate in June 2012 as the country prepared for the start of the summer tourism season. Despite the latest declines, the unemployment figure is likely to rise in the coming months as the government introduces more austerity measures and labor reforms.

Gross domestic product fell 0.3% sequentially in the first quarter, pushing the economy into a recession. Last week, the Bank of Spain said recession intensified in the second quarter.

Source - RTT News

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