Industrial production falls more than 9% so far this year, but the seasonally adjusted measurement registered a decrease of 1%.
The Industrial production fell 9.8% in May, accumulating a fall of 9.2% for the first five months of the year, according to the report by Orlando J Ferreres & Asociados. For its part, the seasonally adjusted measurement registered a monthly drop of 1%.
Industry: what is the outlook for the coming months
Industrial activity fell in May, although He never touched the floor he had found in March again. Thus, the seasonally adjusted series marked a monthly decrease of 1.0%, remaining 3.1% below the level it had in December. In the annual comparison, the drop was 9.8%, where The largest contractions occurred in machinery and equipment (-23.8%), Non-metallic minerals (-25.8%), and base metals (-33.5%).
In the coming months we anticipate that continue the swing of activity industry around current low levels. We hope that an eventual change in trend and beginning of recovery will occur when slowing inflation leads to improved incomes of families and a recomposition of internal demand.
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Industry: sector-by-sector performance
- Food, Drinks and Tobacco: This sector registered an advance of 0.3% during the fifth month, where the only item driving growth was oilseeds (+10.4%), while both bovine slaughter (-9.3%), and the production of beverages (-8.1%) and tobacco (-11.3%) showed annual falls. As a whole, the sector accumulates an increase of 0.8% for the first five months.
- Machinery and equipment: The production of machinery and equipment recorded a drop of 23.8% for May, accumulating a decrease of 21.8% for the five months under analysis. In the detail of automotive production, ADEFA reported a total of 38,440 new units, marking a decrease of 27.9% in the annual comparison.
- Base metals: Base metal manufacturing was the most contractionary sector in May, observing a drop of 33.6%. Among the main lines, the most important decline was crude steel, with production 51.8% lower than a year ago. Also notable is the contraction of 40.9% in the production of hot-finished laminates, and 21.2% in cold-finished ones.
- Non-metallic minerals: The construction inputs sector recorded a drop of 26.8% in May, managing to show a deceleration in the annual rate for the second month (-42.9% in March and -35.6% in April). Thus, this activity recorded a decrease of 30.1% for the five months that have elapsed. In detail, the Portland Cement Manufacturers Association reported a 27.1% drop in the production of this input for the fifth month.
Source: Ambito
