A UIA report reflected that in April more than half of industrial companies suffered a drop in production and internal sales compared to the previous quarter. They see rising costs as the main problem.
A survey of the Argentine Industrial Union (UIA) reflected this Monday that 66% of companies in the sector consider that it is a bad time to invest in capital goods. A year ago the percentage was 46%, while in January 2022 only 25% thought that along those lines.
In a context of brutal decline in production and sales, Firms see rising costs and falling demand as the main problems. Likewise, the contraction of public works and the lack of financing also appear as impediments to the promotion of the manufacturing industry.
According to the survey carried out by the UIA study center in April, More than half of the industrial companies had a drop in both production and sales to the domestic market compared to the previous quarter. In this way, these are the second worst indicators in recent years, only surpassed by the data that emerged in the January survey.
In parallel, 37% had a drop in their exports and 24% experienced a reduction in jobs. The employment data was the only one that managed to worsen the January number.
On the other hand, the industrial crisis has as a correlation that the proportion of companies that had difficulties in meeting all payments rose from 7% to 12%. The biggest problems were verified for the payment of taxesalthough there were also problems in paying suppliers, financial commitments, public services and salaries.
With all these numbers, Nearly 60% of companies say they are worse off than a year ago, but almost the same percentage expects the situation to improve a year from now.
Source: Ambito
