The manufacturing industry Argentina showed an “incipient recovery” in recent months, presenting a net growth of 6.6% between May and November 2024, according to a report from the Rosario Stock Exchange based on the Industrial Production Index (IPI). ), prepared by the Economic Cycle Research Center (CICEc).
The report reflects a rebound in activity, accumulating seven consecutive months of growth, after the period of contraction experienced during much of 2023 and the first quarter of last year. Likewise, considering the eleven months between January and November 2024, the sector achieved a net recovery of 1.5%.
When analyzing the measurement, the BCR assured that ““Although this data is encouraging and represents a starting point for the industry to begin to reactivate, the truth is that this sector of the economy still has a lot of ground to recover.”
In this regard, they specified that “taking into account recent years, the data indicates that, between June 2022 and April 2024, the manufacturing industry registered a net contraction of more than 17%, still far from the recovery of 6.6%.” observed in recent months”, adding that “even the series still continues to lag in year-on-year terms, and in November 2024 the level of activity was 1% behind the same month of the previous year.”
As for the comparison of the behavior of the series in the long termpointed out that “it is noted that the maximum productive performance of the sector was reached in November 2011, while the current values are 12% behind that peak of production” indicating that ““The level of activity reported by the most recent data is comparable to that recorded more than 17 years ago, in October 2007.”
Manufacturing industry: how each sector fared
In the study of the performance of each sector in particular, the report identified those that have most driven the reactivation of manufacturing production, clarifying that “all of the sectors that make up the IPIM showed net growth in the period that extends from May to November, although some of them remained practically stable”.
The sector that marked the The greatest net increase is that of other equipment, appliances and instruments (+21.2%)followed by furniture and mattresses (+21.0%), machinery and equipment (+17.5%), tobacco products (+12.8%) and food and beverage products (+10.2%).
In turn, he contributed that “considering the weight of each sector in the construction of the IPIM, the sector that contributed the most to the recovery of the general index is food and beverages, given that it has the highest weight (25%).”
In this sense, he pointed out that “The weighted growth of this sector between May and November 2024 amounts to 2.5%, “with the IPIM registering a total increase of 7.4% in that period, the result of the combined contribution of all sectors.”
Furthermore, he specified that “within this productive branch, this increase is mainly attributed to the growth in the milling of oilseeds, which in November registered a year-on-year increase of more than 75%, more than compensating for the declines observed in other activities, such as the production of soft drinks.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
