MADRID: Spain's factories slashed output in September as consumer demand plunged in the midst of a recession and austerity cuts, official data showed Wednesday.
Factories, mines and utilities lowered production in September by 7.0 percent year-on-year after smoothing out seasonal blips, the National Statistics Institute said.
It was the 13th straight month showing an annual decline.
Industry slowed in response to evaporating demand after more than a year of recession and with unemployment at 25 percent. That is the highest level since the return to democracy after the death of General Francisco Franco.
A breakdown showed a big fall in the output of industrial equipment, notably metal parts for car manufacturing. Separate industry figures last week showed a car industry in trouble, with new automobile registrations plunging 21.7 percent in October.
Output of intermediate goods used in manufacturing, such as chemicals, factory machinery and treated metals, also declined.
Consumer goods also rolled off the assembly lines at a far slower pace, especially non-durable goods such as foods or clothing. An earlier official report showed retail sales fell by nearly 11 percent in September, the sharpest monthly fall since records began in 2003.
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