Impact of Inflation and Higher Rates on Valencia’s Manufacturing Sector

Valencia’s manufacturing sector in the autonomous communities is under pressure from consumer spending slowdowns driven by inflation and higher interest rates. This trend is already affecting many factories, with shoes manufacturing feeling the pinch most keenly. Data released this Friday by the National Statistics Institute and the Valencian Statistical Institute show that the regional economy cut production more sharply than other areas in July as firms adapted to a tighter market reality.