The Spanish Industrial Production Index fell in January from a year earlier. Let’s see what this means reducing the data and what consequences it brings.

Yesterday, the data revealed Industrial Production Index (IPI) for January and Spanish results were negative in 13 of the 17 regions of the country, according to the National Statistics Institute (INE).

Decline in production earlier this year

According to INE data, industrial production has fallen by 2.4% in a year. The largest decreases were recorded in the manufacture of basic iron and steel, automobile manufacturing and production and distribution of electricity.By region, only three have increased industrial production in January from a year earlier: Murcia (11.6%), Andalusia (6.8%) and Extremadura (3.1%).

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What measures the IPI

The Industrial Production Index is an important indicator as it measures the monthly evolution of the productive activity of the Spanish industry, excluding construction. To get the data from the INE IPI performs a monthly survey of over 13,200 establishments which measures the amount of products produced per month.IPI data therefore essential to determine the health of an economy and is considered an economic indicator relevant. That is, in a contracting economy, one of the ‘symptoms’ will reduce consumption and therefore reduced production, as is being seen in Spain today.

The economic and financial market

To operate in the financial markets is necessary to have a broad knowledge of the particular market, but also about all you can influence it. Economic indicators are a good way of information and a study of the data shows, can serve as ‘tracks’ on how the markets react and therefore in which direction the operational exercise in it.

In addition to the IPI, other economic indicators that are essential when making an investment as the rate of unemployment, consumer confidence index, gross domestic product or the risk premium. The economic calendar is full of dates on which these data are revealed. See and consider this information before entering the market.