Analysis by sectors
Clothing and textiles. Production rose 22.7% annually in March and 2.2% monthly. There was very good demand, but the businessmen explained that they could have produced more if it weren’t for the lack of workshops and the difficulties in obtaining supplies. Also the prices of fabrics had strong adjustments in February and March, which worries the industrialist. The best situation was for sportswear producers. It was more difficult for those who manufacture school clothes, although the high season for winter clothing has already begun in April and there are good sales expectations.
Chemicals and plastics. The item rose 11.7% annually and 6.5% monthly. The situation was good for business, demand was strong and inquiries for future orders remained active. There were problems in the supply of fuel and the companies stated that the current price increases in March did not have such an impact on costs, but they expect it to have an impact from April.
Paper, cardboard, editing and printing. It increased 11.6% annually and 7.1% monthly. Despite paper shortages and increases in supplies, school demand activated many companies that saw production grow significantly compared to last year. The firmness in manufacturing and sales occurred both for the production of paper and cardboard as well as in the publishing and printing industry, which with the return of the Book Fair achieved good sales volumes.
Food and drinks. Production rose 9.8% annually and 6.2% monthly. It was a difficult month due to price increases, especially for those who use flour as their main input. SMEs did well, with good demand, but narrowing profit margins, a situation that they hope to be able to reverse from May, since in April not everything could be transferred to the sale price.
Metallic, machinery, equipment and transport material. Manufacturing rose 4.1% annually and 0.1% monthly. It was the most active sector in investments. Machinery manufacturers were the ones with the best performance in the annual comparison, since last year very little was sold and imports continue to have difficulties to materialize, which pushes the demand for national machinery. The price increases complicated, but there were no shortages of supplies as in previous months, or as also occurred in March 2021.
Wood and Furniture. It was the only item with an annual fall in production (-5.9%) and also in the monthly one (-6.8%). The price increases stopped manufacturing orders, but 80% of the businessmen in the sector consulted expect sales to increase in the next two months. In fact, 2 out of 10 firms in this category plan to incorporate staff into the company.
Source: Ambito
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