Spanish industrial production surprises to the downside in September

Spanish industrial production fell by much more than was expected at the end of the third quarter, weighed down by lower output of capital equipment.

Total output declined by 1.4% month-on-month in seasonally and calendar adjusted terms during the month of September, according to the country's statistics office, INE.

Economists had forecast a drop of 0.5% on the month and an expansion of 2.5% in annual terms.

That followed August's sharp 1.6% rise on the month.

Production of capital equipment saw the largest drop over the month, decreasing by 5.6%, followed by energy output which was off by 1.9%.

Output of durable consumer goods slipped by 0.9% on the month and that of non-durable ones by 0.8%.

In comparison to a year ago, upon seasonal and calendar adjustment total industrial production expanded at a 0.8% clip, down from the 4.5% pace observed in the preceding month.

Capital equipment production was also weakest in comparison to a year ago, falling by 2.2%, while output of durable consumer goods was up by the most, rising 3.0%.