During October, manufacturing activity increased 2.4% annually and broke with four consecutive months of declines.
During October, manufacturing activity by small and medium-sized businesses saw an increase of 2.4% compared to the same period last year, marking the end of a series of four consecutive months of declinesaccording to the Argentine Confederation of Medium Enterprises (CAME).
Despite this rebound, production accumulates a drop in 0.5% in the first ten months of the year. On a monthly basis, a significant increase was observed in 9.8%driven by growing demand that was due to the income policies implemented by the Government in the last month.
The companies operated with el 71.8% of its installed capacity, 1.2 percentage points below September. In this context, industries resorted to using existing stocks to satisfy the demand. monthly demand, which explains the growth in production in October. However, it is important to note concerns about the long-term sustainability of this increase.
Additionally, complications have been identified in the acquisition of raw materials and inputs in various sectors. The concern of some foreign suppliers about delays in payments persists over time, showing a growing trend that complicates commercial relations.
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These results arise from the SME Industrial Production Index (IPIP), prepared by CAME, with a sample that reached 409 SME industries at the federal level.
Sectorial analysis
In October, the sector “Textile and Clothing” experienced an annual growth of 20.2% in production at constant prices, this being the best performance of the month. On the other hand, the “Paper and Prints” had the largest year-on-year drop: 10%.
In the accumulated of the year, the sector of “Food and drinks” leads with an increase of 4.2% compared to the January-October 2022 period, while the “Paper and Printing” sector registers the worst performance with a decrease of 15.5%.
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Source: Ambito
