How did each sector do?

The metallurgical activity recorded, during September, a decrease of -1.6% compared to the same period of the previous year, this being the fourth drop in year-on-year terms of the year. If we compare against August 2023, the activity showed a contraction of -0.6%, according to ADIMRA (Association of Metallurgical Industries of the Argentine Republic).

At the same time, he indicated that the fall of the month was “strongly influenced” again, by the poor performance of the Agricultural Machinery category. Without this sector, production increased 1.2% year-on-year.

In the accumulated of the year, the metallurgical activity It remains in positive territory with 0.3% growth. For the month of October, according to our estimate through our advance production index, activity is expected to register another contraction in the order of -1.5% and 2.0%.

Metallurgical activity: how each sector fared

At the sector level, the items that have positively driven metallurgical activity have been Medical Equipment (4.8%), Electrical Equipment and Appliances (4.2%) and Other Metal Products (2.9%).

On the other hand, the Capital Goods sector (-2.0%) registered its first fall of the year. However, within the sector there is certain heterogeneity since companies linked to the oil, gas and mining value chains continue with positive performances.

The Auto Parts (-2.1%), Bodywork and Trailers (-3.4%) and Foundry (-4.8%) sectors decreased their production compared to September of the previous year. Lastly, the category of Farm Equipment (-17.3%) continues to demonstrate a negative performance in interannual terms, accumulating more than a year of falls in its production.

Metallurgical activity: installed capacity and employment

The use of the installed capacity (ICU) of the month, a drop has also been recorded during August. The utilization level is around 55.8%, which meant a decrease of 5.1p.p compared to the same month of the previous year. This way, The average for the year is 55.1%.

In relation to the level of employment, a decrease was recorded in year-on-year terms during August, with a negative variation of -0.3%. It is the third time that Employment decreases during 2023.

During August 2023, the 29.2% of companies have increased their employee base and 29.0% indicated that they had reduced it.