Industrial activity has not picked up and the year-on-year and monthly figures fell again in June. The preliminary indices for July indicate a moderation of the year-on-year declines and a heterogeneous improvement.
In June Industrial activity registered a 19.5% year-on-year drop in June and a 5.7% monthly drop (compared to May)without seasonality. The month was affected, in part, because it had fewer working days. With these data, has been declining for thirteen months year-on-year consecutive years and accumulated a year-on-year decline of 14.1% in the first half of the year.
According to the Early July data from the Center for Studies (CEU) of the Argentine Industrial Union (UIA),the year-on-year declines would have moderated and there was a heterogeneous improvement since the low levels of the previous month.
It is striking, for example, that double-digit declines prevail in cement shipments, which fell 14.4% year-on-year, while imports from Brazil fell -27.9% in the same period. Likewise, Agricultural machinery patents fell 5.8% year-on-year and, in the Automotive sector, they fell 9.8% in the year.
The demand for electric energy from Large Industrial Users fell 2% year-on-year, although with heterogeneous behavior within the sector. And, another fact is that There were increases in exports to Brazil of 20% year-on-year and, in the settlement of foreign currency, which grew by 35.9% in a year, after two months of decline.
Industry: downward trend in all areas
The data showed a decline at the sector level, with a downward trend in all the sectors that make up the index. The largest declines were again in the Automotive sector, with a year-on-year drop of 40.2% driven by a 33.6% drop in sales to the domestic market in one year and, to a lesser extent, by exports (-10.3% yoy).
Non-metallic minerals is also one of the sectors that suffered the most in June, with a year-on-year drop of 32.3%. In turn, production of basic metals fell (-24.7% yoy), affected by the drop in steel (-35% yoy), while aluminium production fell to a lesser extent (-3.8% yoy). Metalworking also fell (-17.3% yoy), accumulating thirteen consecutive months of decline, with a fall in all areas of the sector.
Paper and cardboard production, on the other hand, decreased year-on-year (-16.3%), with a mixed performance within the sector. Production of newsprint, packaging and corrugated paper decreased, while printing and tissue showed year-on-year growth.
Note in development.-
Source: Ambito
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