By Xavier Fontdegloria
Spain’s industrial output took a hit in March after a gain in the previous month, a sign that factory-sector activity weakened at the end of the first quarter amid persistent supply-chain bottlenecks and high costs.
Industrial production fell 1.8% in March on month, the sharpest fall since May 2021, data from the country’s statistics office INE showed Friday. In February, output increased by 0.9%.
On an annual basis, industrial production rose by a marginal 0.1% in March, the data showed.
The Spanish economy, the eurozone’s fourth largest, expanded 0.3% in the first quarter over the preceding quarter, as the spread of the Covid-19 Omicron variant in early 2022 weighed on the services sector.
However, the economy is expected to pick up pace in the second quarter as a rebound in services activity will likely offset a subdued performance of the factory sector, Pantheon Macroeconomics’ senior Europe economist Melanie Debono said in a research note.
Write to Xavier Fontdegloria at [email protected]
Credit: www.marketwatch.com /