He Industrial Production Index (IPI) of the Latin American Economic Research Foundation (FIEL) registered in March a year-on-year drop of 13.7% and accumulate a decline of 9.4% in the first quarter of the year.
The Foundation also revealed that cement shipments have been in decline for a year, having accelerated the pace of decline since November and showing a further contraction in bulk sales.
For their part, the basic metal industries explained from the same study that were affected in March by union measures, which together with the brake on Acindar’s production to adapt the level of activity to the decline in sales“resulted in a marked decline in primary and processed production in the steel industry.”
In the case of automotive productionafter leading industrial activity for the last three years, in March deepened the fall observed in previous monthswith a significant production cut -both automobiles and utility vehicles-, in exports and patents.
“While problems with the supply of imported inputs persist, The main challenge that the terminals face in the coming months is the adaptation of production plans to the fall in domestic demand and exports to destinations such as Chile, Peru, Colombia and Mexico,” FIEL explained.
The last sector with a greater than average decline in March was lto metalworking with generalized falls between activities within the branch and with the application of reduced work schedules from the end of the month and shutdowns projected for April in durable white goods plants.
Among the branches of activity with a lower than average contraction, Food and beverages again showed a decline in dairy, slaughterhouses, bakery products and beverages in March. which was combined with a recovery in soybean oil production, which will continue to support the block following the expected improvement in the harvest, they reported.
In the case of beef slaughter, it continues to decline with no improvements expected in the coming months. All in all, in the first quarter of 2024 activity accumulates a decline of 9.4% with 85% of the industry showing a drop in activity compared to the same period last yearexplained from FIEL.
FAITHFUL: industrial activity, how it went in the first quarter
Regarding the performance of the industrial branches in the first quarter, all accumulate a drop in comparison with the same period in 2023. The biggest decline in the period was recorded the production of non-metallic minerals with a drop of 31.2% in the interannual comparison.
They followed the branch the automotive industry that had a contraction of 23.2%the basic metal industries with a reduction in activity that reached 17.1% and the metalworking industry that registered a decline of 15.9%, in each case in the first three months of the year and in the interannual comparison.
With a contraction lower than the industry average, the branch of food and beverages with a drop of 4.5%cigarette shipments (-3.9%), the production of chemical and plastic inputs (-1.9%), the oil process (-1.7%) and the production of paper and pulp (-0. 7%), and textile inputs were placed at a slightly lower level (-0.3%).
“From the perspective of the type of goods produced, in the first quarter they all made a contribution to the contraction of industrial production. In the period the greatest accumulated decline corresponds to the production of capital goods with a drop of 20.4% in the comparison with the first quarter of 2023”, they explained from FIEL.
In the case of durable consumer goods, Production in the first three months of 2024 is 18% lower than that of the same period last year. These results are explained by the decline in the production of automobiles and utility vehicles, machinery and equipment and durable white goods.
“With a lower than average decline, intermediate use goods are placed which in the period registered a contraction of 7.8%, with this type of goods being the ones that made the greatest contribution to the fall in industrial activity. Finally, non-durable consumer goods showed a decline that reached 4.4% in the quarter,” they expanded.
In seasonally adjusted terms, Industrial production in March advanced 1.4% compared to February, marking an impasse in the decline in activity. With the above, there was a brake on the deterioration of the indicators that indicated a deepening of the contraction of the industry.
The industry recorded a marked year-on-year drop in March, which in some activities was similar to the records at the beginning of confinement in 2020. In the quarter, all industrial branches accumulated a decline in comparison with the previous year, with the largest falls among capital goods and consumer durables.
“Despite the impasse in the fall in activity in the short term, there are no signs, nor drivers that support, an accelerated reversal of the current industrial recession,” they closed.
Source: Ambito
