Intermoney | Industrial production recovered in February, advancing by +0.7% m. (five tenths more than expected) while January’s was revised downwards by two tenths to 0.3%. The solid growth in manufacturing activity (0.9% month-on-month) together with mining production (2.8% month-on-month) meant that the fall in utilities (2.5% month-on-month) was not particularly noticeable, thanks to the mild temperatures compared to a particularly cold January. In the details of the data, the production of non-durable manufactured goods rose by 0.2%, as the increase in the production of chemical products offset the decline in the production of food and beverages. The overall picture, however, was positive, as durable consumer goods grew by a very strong 4.3% month-on-month thanks to the recovery of activity in the automotive sector (7.8% month-on-month) after two falls of 3.0% and 4.5% in December and January, respectively. Together with the components, this rise in production reached 8.5%.
It was logical that, after the freezing temperatures of January, certain indicators that slowed down in the month would see a recovery in February. In the case of new construction, for example, this significantly exceeded consensus expectations, growing by 11.2% month-on-month and exceeding 1.5 million annualised (from 1.35 million in January). However, the decrease in building permits (1.2% month-on-month to 1.46 million) did dampen spirits. Above all, because tariffs are generating great uncertainty about the costs of construction materials. Although the fall in mortgage rates is playing in a favourable direction, the crux of the matter for builders is centred solely on the trade war, which is particularly affecting key materials such as steel and wood.
