New developments in Alicante’s July export activity show the region maintaining notable strength across key sectors, even as some segments experience pressure. Local business leaders remain attentive to how this performance affects important industries such as toys and shoes, while broader European consumer demand continues to face headwinds from elevated prices and rising mortgage costs.
Data from the Foreign Trade Institute indicates Alicante’s outward shipments reached 200 thousand liras and 566.9 million euros in July, marking a 9.7% decline from the same month in the previous year. This dip contributes to a pattern of softer exports so far this year, following declines in April and May, which has tempered the earlier year’s rebound. The seven months to date exceed 4 billion 347 million euros, signaling only a modest 3% advance and suggesting that without a shift in the near term, the external sector could see its first negative annual performance in more than a decade.
Among July’s notable shifts, food industry exports, particularly fruit shipments, fell by 31% versus July of the previous year. José Vicente Andreu, president of Asaja Alicante, explains that the issue is not demand shortages but rather supply gaps, which constrained sales to Europe despite rising interest elsewhere. This highlights the seasonally sensitive nature of agricultural exports and the challenges posed by harvest variability and water management. The low harvest also left melons and watermelons in tighter supply, a situation captured by industry observers at the time.
Icex data further show notable declines in shipments of citrus, almonds, and melons. Agricultural sector representatives note a smaller citrus harvest and an earlier campaign end, with almonds facing similar timing effects. For melon and watermelon, growers faced pruning and water constraints, affecting the supply chain from field to supermarket shelves. Still, optimism remains that a robust citrus campaign could bolster activity in coming months, with other products expected to be released soon.
According to Andreu, the numbers may rebound later in the year as these crops recover and new products come online.
Industry
Industry-wide expectations diverge from earlier optimism. The observed declines appear to stem from softened consumer spending, with little sign of a rapid recovery. July footwear exports reached 115.1 million euros, down 10.6% from the prior year, contributing to a yearly negative balance of 1% at 787.4 million euros. The Avecal employers’ association has warned that these trends reflect a broader strain on family finances across the continent, linking weaker demand to the economic squeeze facing households.
Footwear slows progress with 9% decline in exports
There is an undercurrent of deterioration in other traditional industries as well. Toys produced in the region generated 12.4 million euros in July, down 21%, while total toy exports for the first seven months stood at 71 million euros. AE FJ representatives emphasize that prospects hinge on the upcoming Christmas season, even as concerns mount about the sector’s vulnerability to fluctuating consumer demand.
Rising mortgage costs and price inflation are cited by business leaders as compressing purchasing power, a dynamic that is echoed in national sales trends. The regional business community stresses that consumer finances must stabilize to support a sustained export rebound.
More drops
Other sectors saw declines in July as well. Furniture exports fell by 12% to 11.7 million euros, aluminum products dropped 16% to 32.3 million, and plastics decreased 3% to 38.9 million. In contrast, some segments managed small gains: marble sales rose 4.7% to 9 million euros, while home appliances and electrical equipment, including batteries, increased by 0.4% to 13.8 million euros, reflecting selective resilience in certain product lines.
Overall, the July data underscore a mixed but still resilient export picture for Alicante, with several sectors navigating seasonal cycles, weather-driven supply constraints, and macroeconomic headwinds. Market participants remain cautiously optimistic that improved harvests, new product releases, and continued demand recovery could bolster external trade in the second half of the year.