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this industry Year-on-year plunge of 14.3% in May And, contrary to what happened in April, it registered Seasonally adjusted monthly decline of 0.6%. Thus, the sector saw a new decline after an initial rebound of 4.5% last month. In addition, since August More than 21,000 jobs lost.
The data comes from a report Argentine Industrial Union (UIA)which explained that the industry’s performance was “impacted by lower demand levels and increased costs in certain sectors.” At the same time, this is also the 12th consecutive month of year-on-year decline, and the cumulative year-on-year contraction so far in 2024 has been 12.8%.
Fiscal balance: The government recorded a surplus for the sixth consecutive month in June
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Industry crisis deepens in June
At the same time, the report led by the entity Daniel Funes from Rioja Pointing out that the advance data for June reflects a continued collapse compared to 2023, it is expected The monthly series will also show a decrease, thus extending Hidden Valley.
However, the analysis stressed that the information provided was “partially Due to holidays, the number of working days is reduced“Similarly, the effect of discounting is A decrease in amplitude was observed”, warning the author of the text.
In last month’s industry analysis, the industry showed a significant decline Automobile (-40.2%), Cement shipments (-32.8%)y Agricultural machinery patents (-36.6%)Likewise, electricity demand from large industrial users fell (-13.3%).
In terms of trade, Brazil’s imports fell by 50.8% and exports grew by 8.8%. In contrast to the situation in April and March, currency clearing in the foreign exchange market increased by 25%.
“While this month’s performance was partially impacted by fewer working days, Industrial activity continues to face difficulties due to low demand and rising costsAgainst this backdrop, the industry registered an accelerated decline in paid employment in April. The number of positions held in that month was 5,074, a cumulative decrease of 21,285 from August 2023”, warned industrialists.
Industry in turmoil: poor performance in May
In most of the items that make up the UIA index, a downward trend predominates. The most significant decline occurred in Non-metallic minerals (-28.8%)and in this department Automobile (-27.9%)the decline was due to lower sales levels in the domestic market (-36.2%) and exports (-24.1%).
At the same time, production Base metals (-19.5%)affected by a drop in steel production (-29.4%), while aluminum production increased compared to May last year (+3.5%). He also succumbed Metal processing (-17.6%)The cumulative decline marked twelve consecutive months, with all sectors of the industry experiencing declines.
“As for the chemical substances and products sector, year-on-year decline was again recorded (-9.7%), with all products that make up this indicator registering a decline, mainly due to the lower performance of the production of chemical substances and products. In the CIQyP sector, the most significant declines were recorded in intermediate petrochemicals (-21.9%), inorganic chemicals (-12.4%) and plastic raw materials and synthetic rubber (-8.9%),” said the report.
About production Food and beverages down -4.9%which was offset by an increase in petroleum (10.9%). Excluding this category, which saw year-on-year growth, the change in the rest of the food industry was -7.1%.
In itself, manufacturing Paper and paperboard decreased by -12.6% year-on-yearalmost all sub-items are dominated by regression. The overall level of decline is due to the production of packaging, printing and household paper, while newsprint has increased.
The only item in the index that showed growth was Refining (4.4%)after five straight months of decline. It was one of the fastest-growing sectors in the Mire era, with Vaca Muerta also seeing higher levels of exploitation.
Industrialists wary of recession
Industry representatives gathered at UIA expressed their views in light of the data that exposed the profound crisis the industry is experiencing. Concerns about falling activitythe increase in input costs, the impact of the economic environment on the production sector and The rise Energy Rateswhich particularly affects small and medium-sized enterprises.
RIGI Buenos Aires: What Axel Kicillof plans to promote to encourage large-scale investment
Besides warning of job losses, industrialists also agreed on the need to promote “ Agenda of measures to revitalize the internal market (focusing on the development of local production, consumption and formal employment), promoting value-added exports (increasing tax rebates, reducing tariffs) and resisting unfair competition (anti-dumping and standard value, etc.)”.
They also used Uphold the Small and Medium Enterprises Act It is based on six axes: tax simplification, the creation of an incentive system for industrial SMEs to complement their investments Large Investment Incentive System (RIGI); Automatic updating of classification parameters; Tools for internationalization of companies; Simplified creation of new companies and financing channels.
about St. RegisThe industry union asked the government to Javier Miley Provisions of the tax reform initiative approved by the National Congress A series of points that are beneficial to national industry.
In this sense, they require that local suppliers declared by the Single Project Vehicle (SPV) must be local industries; identify 20% for the development of national industry suppliers, enjoy the same benefits as other suppliers entering RIGI, and other aspects related to national industry. ”The goal is to create more local suppliers and employment opportunities through RIGI’s strengths”, they explained from UIA.
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