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INE

Spanish factories raise output in March

Spain's factories are gently lifting production in response to a hesitant, jobs-starved recovery from years of recession, official data showed on Thursday.

Spanish factories and utilities raised output at an annual rate of 0.6 percent in March, after smoothing out seasonal blips, the National Statistics Institute (INE) said.

It was the fifth straight month of rising industrial output in the Spanish economy, which emerged in mid-2013 from five years of stop-start recession.

Despite reporting slow economic growth, Spain remains scarred by a 2008 property crash, which destroyed millions of jobs. In the first quarter of this year, the unemployment rate edged up to nearly 26 percent.

Spanish industry appears to be reacting to the resulting weakness in the consumer sector, latest data showed, with output of consumer goods easing 0.2 percent.

A breakdown showed production of durable consumer goods such as cars or refrigerators slumped by 4.8 percent while output of non-durable consumer goods such as paper or food edged up by 0.8 percent.

More hopefully, output of business equipment such as machinery climbed 3.0 percent and intermediate goods used in manufacturing, such as textiles or chemicals, rose by 1.7 percent. Utilities lowered energy output by 2.5 percent.

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YEMEN

Norway halts defence exports to Saudi Arabia over Yemen

Norway said on Friday it was freezing all defence material export licences to Saudi Arabia over recent developments in the country and the war in Yemen.

The announcement came amid international outrage over Riyadh’s killing of Saudi journalist Jamal Khashoggi in the kingdom’s consulate in Istanbul in October, though Norway did not mention the murder specifically.
   
“We have decided that, in the current situation, no new licences are to be granted for exports of defence-related products or dual-use items for military use to Saudi Arabia,” Foreign Minister Ine Eriksen Soreide said in a statement.
   

“The decision was taken after an overall assessment of recent developments in Saudi Arabia and the region, and the unpredictable situation in Yemen,” the foreign ministry said.

 
Norway sold defence material worth more than 41 million kroner ($4.86 million, 4.29 million euros) to Riyadh last year, according to Norwegian news agency NTB.
 
 
The Scandinavian country has never allowed exports of arms or ammunition to Saudi Arabia, the ministry said.
   
It said it had no indication that Norwegian defence-related products were being used in Yemen, and stressed its decision was “precautionary”.

   
Saudi Arabia leads a coalition that intervened in Yemen in 2015 to support the government there against Shiite Huthi rebels who are backed by Riyadh’s arch enemy Iran.
   
The coalition has been waging an aerial bombing campaign in Yemen aimed at pushing the Huthis back, but the rebels still hold the key port city of Hodeida and the capital Sanaa.
   
Pro-government forces are currently pushing deeper into Hodeida amid fierce fighting. Nearly 10,000 Yemenis have been killed in the conflict since 2015, according to the World Health Organization. Human rights groups say the real death toll may be five times higher.
   
Several aid organisations and opposition parties have recently demanded that Norway halt its defence material exports to Saudi Arabia.