Data from the Industrial Situation Survey

Industrial Climate Indicator in December reaches its best figure in 20 years

News - 2022.1.7

The Industrial Climate Indicator in Spain (ICI) has risen 2.1 points in the month of December with respect to the previous month, reaching a value of 5.9 points. The indicator remains at year-to-date highs and above the levels reached two decades ago (since June 2000, when it also recorded a value of 5.9 points). In year-on-year terms, as in previous months, the indicator shows a significant improvement, with a value 13.8 points higher than in December 2020.

For the Minister of Industry, Trade and Tourism, Reyes Maroto, "it is a very positive sign that this indicator has reached record figures in the last twenty years because it indicates that industrial activity is recovering and has good prospects for the coming months. For the government, industry is a priority sector and has an ambitious investment plan aimed at improving the competitiveness of Spanish industry. The results of this plan are already being seen, as can be seen month after month in the evolution of the various economic indicators, which show an improving trend in Spanish industry, a key sector for our economy."

The positive value of 5.9 points of the December ICI is mainly determined by the positive balance in both the level of order backlog (+11.6 points) and production expectations (+9.6 points). These values are offset by the balance in the level of stocks (3.4 points), which is within the usual range for this indicator.

In December 2021, employment expectations for the next three months have reached a value of 3.0 points, confirming a higher level than before the start of the pandemic.

The ICI continues its upward trend after plummeting at the start of the pandemic in 2020, when it fell by more than 30 points (to a level of -35.6 points in April 2020, the lowest level in more than a decade). As a result of this positive development, the indicator already surpassed pre-Covid levels at the beginning of 2021 and stands at the already mentioned highest level since 2000.

Industrial activity started to recover from the second half of 2020, confirming its improvement in 2021. Thus, not only the ICI but also the other short-term indicators of the sector have already reached values above or close to those recorded prior to March 2020.

The results are available on the Ministry's website.

Based on the information provided by the Industrial Situation Survey, the Industrial Climate Indicator (ICI) is compiled, which is a summary of the perception of business people in the industrial sector regarding the current situation of their activity and their prospects for future evolution.

Non official translation