Footwear leads the decline in industrial production in the Community of Valencia

In general, the decline in the purchasing power of consumers and uncertainty about economic developments led to the autonomization of the manufacturing sector as a whole. 6,4% reduction in inter-annual activities inas expected This is the biggest contraction in this indicator since the beginning of the epidemic. Moreover, this contraction was much higher than that recorded nationwide, where the Industrial Production Index fell just 1.8%.

The biggest slowdown occurred in this period. shoewhere are the manufacturers reduced their production by up to 26.2% According to the same sources, there is already a 15% decrease compared to the figures for July of the year. It is a fact that businessmen, who have been warning about changes in consumer trends for some time, are well aware. “If inflation is forcing families to spend more on core products, it makes sense for them to cut other types of products as well, and fashion is not a priority”He remembers the president of Avecal, Marian Cano.

A cut that feels more intense for now. European markets, It’s where families react earlier to adjust their budgets than in Spain, where these changes often take longer to notice, according to Cano. For this reason, the industry looks at the events with special interest. GermanyInflation and the war in Ukraine have even led to the bankruptcy of some key distributors in the industry, as the manufacturers confirmed at the last Düsseldorf show.

less investment

In addition to shoes, the second sector that decreased its production the most was manufacturing. machinery and equipmentor with a 25.3% drop in July and a 19% year-on-year cumulative. According to the president of the Alicante Metal Entrepreneurs Federation (Fempa), the bad news is, louis rodriguezassuming machine sales a “thermometer” of the forecasts of the remaining sectorsand a decrease in these shows: investments are paralyzed or refurbishment of equipment.

“There are too many worries Because the forecasts are negative and there is a feeling that we will end the year much worse than when we started, and that the situation created by inflation and credit tightening is starting to take effect,” insists Rodríguez.

The reality is that declines in activity are already affecting almost all branches of activity. food industryRecording an annual increase of 3.9% in July; and production electronics and computer materialshowed a remarkable increase of 28.8% in June and accumulated by 43% during the year.

On the contrary, production tile It reflects a decrease of 20.1% – when the gas price problem experienced by Castellón producers is added to the overall situation-; non-metallic mineral products, marble, drops another 12.7%; And Textile It recorded a decrease of 6.8%, reaching 8.7% in the first seven months of the year. “We had two good years after the pandemic but now Like everyone else, we are suffering from a decline in consumption across Europe”, Knows Ateval’s president Pepe Serna.

Yes, for now, the interruption in the activities of the factories continues does not translate into layoffswith a few exceptions. For example, in the case of shoes, manufacturers benefit from the flexibility provided by the use of fixed-permanent contracts, while in the remaining cases, businessmen prefer to wait before making any decisions for now. All those consulted are aware of the importance of what will happen in the coming months.

The signals from the European Central Bank do not bode well for now, as continued inflation in most European countries indicates that: Interest rates will stay higher for a whilethis will continue to cool the economy of the entire continent and therefore the demand of its consumers.