The overall level of Economic activity contracted again in May, and registered a 4.4% year-on-year drop, accumulating for first five months of the year a collapse of 6%, according to the IGA-OJF, from the Orlando Ferreres consulting firm.
For its part, the seasonally adjusted measurement registered a decrease of 0.8% compared to the previous month.
“THE IGA-OJF registered a drop during May, consolidating a floor in the level of activity. The seasonally adjusted measurement observed a decrease of 0.8% compared to April, and Although it did not fall below the March floor, it was close to that level,” Ferreres remarked.
The sectors that had the most negative impact on the aggregate were: industry (-9.8%), trade (-10.4%), construction (-20.2%) and financial intermediation (-10.5%).
At the other end, the agriculture, with very large figures due to the contrast between the current thick campaign and last year’sand the mining driven by oil and gas production in Neuquén.
Going forward, Ferreres hopes that “In the coming months a slow recovery will begin, contingent on the consolidation of the order of macro variables and family incomes growing above inflation.”
Fall of the economy: how each sector fared in May
Agriculture and Livestock
The sector continues to record large growth figures due to the contrast between the current heavy campaign and last year’s. So, the sector grew 63.3% in Mayaccumulating an advance of 38.6% for the first five months.
Manufacturing industry
The industry registered a drop of 9.8% for the fifth month when compared to the same month last year, accumulating a decrease of 9.2% for the months to date of the year. Among the sectors, the most significant declines occurred in machinery and equipment (-23.8%), non-metallic minerals (-25.8%), and base metals (-33.5%).
Electricity, gas and water
The sector surprised in May by observing an expansion of 10.2%bringing the cumulative total for the five months to show an advance of 1.6%. The increase in May is mainly explained by the low temperatures that occurred in the central area of the country. In its monthly report, CAMMESA points out that the average temperature in GBA during May was 4 degrees lower than the average for the same month last year, leading to an increase in demand of 12.9% annually at the country level, which was supplied with a 14.3% annual increase in generation.
Mines and Quarries
The IGA-OJF estimated for this sector a increase in crude oil production of 6.1% annually, and of 10.6% in gas productionleading the sector as a whole to show an advance of 7.0% in the annual measurement, accumulating an expansion of 6.1% for the five months under analysis.
Source: Ambito
