Madrid, Sep 8 (EFE).- Spain's industrial output fell by 1.6 percent in July relative to the same month of 2009 and by nearly 0.5 percent from the month before, reversing a four-month upward trend, the National Statistics Institute, or INE, said Wednesday.

Spain's industrial production index for the first seven months of 2010 was 1.4 percent higher than in the same period of last year, but July output in all sectors except energy was down compared to that same month of 2009.

The industrial production shortfall in July was due in large part to a drop in output of capital goods - down 6 percent from 2009 due to a decline in the manufacture of metallic materials for construction and other general-use machinery.

That contraction was offset somewhat by small gains for production of vehicles and vehicle components.

The non-durable consumer goods sector also shrank in July by 1.8 percent, due to a decrease in production of beverages and dairy products.

By contrast, energy-sector output climbed 5.7 percent relative to last July due to an increase in oil refining and to a rise in electricity production, transmission and distribution.

In Spain, the effects of the global recession have been aggravated by the collapse of a long construction and property boom that made the country's economy the envy of most of Madrid's partners in the European Union.

The economy grew slightly in the April-June period after expanding 0.1 percent in the first quarter, though the Socialist government's own forecast calls for a contraction of 0.3 percent for the year as a whole.

With unemployment topping 20 percent and a budget deficit that rose to 11.2 percent of GDP last year, the government has responded by enacting austerity measures and approving a labor overhaul bitterly opposed by unions.