Industrial Production in Spain rebounded strongly in August. Specifically, it advanced to + 1.7% a / avs. + 0.6% estimated and + 1.2% above (revised upwards from + 0.8%).
According to analysts at Bankinter, the data is positive. The indicator regained ground in August after the previous month’s decline (up to + 1.2% from + 1.6% earlier). Concerns about the impact that protectionism and the slowdown of growth are currently having on the Spanish industrial sector are thus moderated.
Also, industrial production data has been released in Germany, which fell by -4.0% in August vs. -4.3% estimated and -4.2% prior. Although the data is better than estimated and confirms a slight path of recovery in the indicator (June -4.7%, July -4.2% and August -4.0%). However, the record remains clearly weak and shows the impact that the commercial war, and the slowdown in global growth, have on the German industrial sector.
A matter of concern about its weight on the country’s GDP. In this regard, it is worth recalling the recent cut in growth estimates of the German Government Advisory Council (the “five wise men”) just a few days ago. Specifically, they reduced their forecast to + 0.5% in 2019 (from + 0.8% previously) and to + 1.1% in 2020 (from + 1.8% previously