According to CAME, the month of July presented a negative variation of 3.2% compared to the same month of the previous year, and 2.6% compared to June.
For the second consecutive month, the SME manufacturing industry contracted. In the month of July, it presented a negative variation of 3.2% compared to the same month of the previous year, and 2.6% in the comparison with June, according to the Argentine Confederation of Medium Enterprises (CAME).
It was an atypical month, marked by electoral dynamics, which affected the normality of many companies. For example, 54% of the firms consulted declared more problems replenishing stocks than in the month of June. In any case, for the first seven months of the year, the SME industry maintains a growth of 0.6% compared to the same period in 2022.
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The companies They started July calmly, producing at full capacity, but around the second half of the month the markets began to tighten and suppliers fell back supplies deliveries for fear of future increases. The price lists also showed stronger adjustments, which the industries had to transfer to the sale price due to the low margin to continue absorbing increments.
The businessmen consulted stated that the political variable was the one that caused the greatest damage to them, and there are fears about thes difficulties to improve the current outlook until the end of the year.
These results arise from the SME Industrial Production Index (IPIP) prepared by CAME, with a sample that reached 404 SME industries at the federal level.
The best performance in July was returned to the category “Food and drinks”, with an annual growth of 4.4% in its production, at constant prices. The worst occurred in “Paper and Impressions”, with a year-on-year drop of 22.9% per year.
In terms of accumulated interannual variation from January to July, the situation is repeated: “Food and beverages” stands out with the best performance with a positive variation of 5.3%, while “Paper and impressions” suffered a drop of 14, 8%, compared to the same period last year.
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Source: Ambito
