The industry contracted in July before the fall in domestic demand and increased smugglingand has been maintained for 13 months without being able to reach an expansive dynamic, according to a recent survey of the Argentine Industrial Union (UIA).
He Industrial Performance Monitor (MDI) The UIA Studies Center anticipated in its August report that the evolution of industrial activity was 45.3 points in July, below the thirteenth consecutive expansion threshold.
Although the relay threw an improvement with respect to July 2024, the MDI index remained stable compared to the past survey and after the strong fall recorded in January.
Among the main variables, negative results predominated: 36.3% of companies reduced their production with respect to the average of the second quarterwhile 21.8% recorded increases.
In turn, 43.5% reported casualties in the sales and only 18.6% increases. On the side of the Exports30.5% of the companies surveyed announced falls, while the increases reached 16.6%.
In terms of employment, 24.4% of the signatures said they reduced their staffing, reaching their highest level in the seriessimilar to April last year. In that line, the companies that carried out personnel cuts were 19.4%, a figure that grew during the last four surveys of this type.
Companies moderate their future optimism and warn of domestic demand
In the seventh month of the year, Companies moderated their future optimism and 40.1% warned of the fall in domestic demand as the main concernfollowed by the increase in costs (21.4%).
A lower proportion of companies provides for improvements their economic situation in the coming months (48.6% against 57.8% in the previous survey), and more than half warned by the increase in the informal offer of products similar to its own by smuggling.
In addition, 39.6% of the respondents had the need for a bank loan and 42.8% of these admitted that they did not access the initially required credit.
The UIA survey was carried out between August 4 and 28, based on 19 questions and the answer of 787 companies of various activities, regions and sizes.
Source: Ambito
