Spanish industrial production contracts in February

Industrial production in Spain unexpectedly slumped in February, driven entirely by a sharp decline in energy production.

Production declined by 0.2 per cent over the month on a seasonally-adjusted basis, in contrast to economist forecasts of a 0.3 per cent rise.

The decline meant the year-on-year growth rate slipped to 2.5 per cent, from 2.6 per cent in January. Economists had expected it to climb to 3.2 per cent.

The result follows similarly disappointing data out of France this morning, where production contracted at its worst monthly pace in six months. However, Germany’s powerhouse industrial sector once again beat forceasts.