(RTTNews) - Industrial output in Spain logged its biggest decline on record in December adding to increasing fears that the recession has deepened.

Data released by the National Institute of Statistics on Thursday showed that industrial output plunged by a record 19.6% year-on-year in December, much larger than the 15.3% drop in November. Industrial output also fell faster than economists’ expectation of a 16% drop. The report revealed that the latest fall marked the eighth consecutive month of decline in industrial output.

On an unadjusted basis, industrial production dropped 15.4% annually in December compared to a 17.4% drop in November.

During the month, manufacturing output fell 17.5%, while mining and quarrying output dipped 14.1%. Production of utilities was down 2.6%.

In December, all industries showed weakness in production. Consumer goods production slipped a calendar adjusted 10.8%, at a faster pace compared to a 9.3% fall in November. Durable goods output continued on its downtrend trend and plunged by the steepest levels in the whole of 2008. Production fell 31.4% in the month compared to a 23.9% decline in November. Non-durable goods production fell for the fifth consecutive month, slipping 7.3% in December compared to a 6.7% drop in the previous month.

Capital goods production also dropped for the fifth consecutive month, by 21.6% in December compared to a 15.7% slide in November. Production of intermediate goods continued to slide in December, slipping by a sharp 33.6% versus a 24.3% fall in November. Energy production continued its downward spiral for the fourth month, dropping 3.4% in December following a 3.1% fall in November.

In 2008, industrial production slipped by a calendar adjusted average 6.8% year-on-year. Unadjusted, industrial production fell 6.5%.

In a recent report, the Bank of Spain said the economy is in recession for the first time since 1993 after contracting in the last two quarters of 2008. In the fourth quarter, the GDP fell 1.1% sequentially, following a 0.2% decline in the third quarter. The International Monetary Fund had said the Spanish economy is in a recession mode.

Adding to the existing economic woes, Spain’s labor ministry reported Tuesday that the number of unemployed increased 6.35% or by 198,838 persons month-on-month in January.

Spain’s statistical office is set to release fourth quarter GDP figures on February 12.

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