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Spanish industrial production increases

Spanish industrial production increases

When one major sector of a country’s economy shows signs of positive growth then the others are normally not far behind.

So the news that industrial production in Spain is on the up is being taken as good news for the property market, which has suffered badly over the past few years.

The Industrial Production Index in Spain hit an annual rate of 7.3% in April and this figure represents a 17 point rise from the month before. Non-durable consumer goods, capital goods and intermediate goods were the areas that performed best.

Prime Minister Mariano Rajoy had claimed progress was being made in the recovery process and the new figures seem to back him up.

A joint statement issued with European Commission president Jose Manuel Barrosso stated that there had been "substantial progress" both in decreasing the public deficit and lowering inflation.

Whilst an immediate knock on effect on property values and transactions is unlikely, there is hope that the high unemployment levels may be reduced by an improving industrial sector. This will in turn follow through to the housing sector as more money once again enters the system.

A large part of the problem that the Spanish property market has been facing is the lack of domestic demand even in the face of historically low prices. This is in part due to the unemployment problem but also down to the continued restrictions on lending by the banks.

In some areas, such as the Costa del Sol, overseas investment has kept local property markets stable but in order for there to be a full recovery Spanish people themselves need to be able to make purchases in large numbers.

However, Land Registry data has revealed that house sales were up by 28.73% on the last quarter of 2012, representing a total figure of 100,768 transactions – the highest number recorded for the last eight quarters.

If you want to send money from UK to Spain to buy a property make sure that you check out the different exchange rate deals offered by specialist currency firms as they are often far better than those offered by banks.

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