Spain’s General Industrial Production Index (IPI) rose by 0.9 percent year over year, according to the National Institute of Statistics (INE). The October reading was 4.8 points higher than September, signaling a clear shift back toward growth after a stretch of weaker performance.
Industrial output moved back into positive territory in October following four consecutive months of annual declines. The latest data show the upturn across most sectors, with energy production being the lone exception for the month, posting a 5.7 percent drop compared with the prior year. Capital goods led the gains, rising 5.6 percent year over year. This was followed by consumer durables at 2.0 percent, non-durable consumer goods at 1.8 percent, and intermediate goods at 0.6 percent.
Within the business segments, the largest year-on-year reductions occurred in other mining activities at 18.5 percent and in graphic arts and extractive industries, each down 18.4 percent. In contrast, the strongest increases were seen in motor vehicle manufacturing, up 13.1 percent, and in other transportation equipment, up 10.7 percent.
Seasonal and calendar effects have been adjusted. In October, industrial production fell 1.5 percent compared with October 2022, while the previously observed September decline has been revised upward by three tenths of a point, reflecting updated seasonal corrections and data revisions.
Nine communities report higher industrial production
Across October, eight autonomous communities recorded year-on-year growth in production. Extremadura jumped 17.7 percent, followed by the Canary Islands at 9.4 percent and the Balearic Islands at 6.4 percent. Other regions also posted gains, contributing to a broader regional recovery in manufacturing and related activities.
On the flip side, several communities experienced larger declines. Cantabria posted the steepest drop at 11.8 percent, with the Valencian Community down 5 percent, La Rioja at 3.7 percent, and both Andalusia and Navarra showing annual decreases of 2.6 percent. The Basque Country and other areas saw more moderate slowdowns, with declines around 0.5 percent and 1.1 percent respectively, while Murcia registered a 1.8 percent drop.
Industrial production fell 0.5 percent in the month
Looking at the month-to-month figures, October’s adjusted series shows a 0.5 percent decline from September, contrasting with the 1.1 percent rebound observed in September. By sector, energy was the sole area to expand in October, rising 0.4 percent, while capital goods slipped 1.8 percent, intermediate goods fell 1.2 percent, and durable and non-durable consumer goods dipped 0.6 percent and 0.1 percent respectively.
From an activity perspective, the month-over-month growth drivers were led by clothing manufacturing, which surged 32.3 percent, followed by leather and footwear production at 1.6 percent and motor vehicle manufacturing at 1.4 percent. Conversely, the most pronounced declines occurred in the extraction of coal and related products at 19.8 percent, other extractive activities at 12.1 percent, and graphic arts at 6.9 percent.
These movements align with a broader pattern seen in the regional and sectoral mix. The October data reflect ongoing adjustments in energy demand, capital expenditure in manufacturing, and shifts in the supply chain that businesses across the country continue to navigate. From a macroeconomic perspective, the latest figures suggest a gradual stabilization of industrial activity after a period of softer momentum, with notable regional disparities signaling local structural factors at play. The interpretation for policymakers and analysts in North America emphasizes watching the balance between energy investment, consumer demand, and manufacturing productivity as Spain and its partners adapt to evolving global markets.