Industry started 2026 with a capacity utilization rate of 53.6%, even below the figure for the same month in 2025, which was 55%, according to INDEC. The data reflects a start to the year with lower activity levels in several key sectors, in a context of productive adjustment and still weak demand, as reported by Agencia Noticias Argentinas. The indicator measures what proportion of the productive potential of industrial plants is actually in use. The January 53.6% is the lowest level since March 2024, when it recorded 53.2%. It reflects that the sector continues to be unable to recover from the contraction in activity and the impact of imports. At the sectoral level, capacity utilization reflects what is happening with activity: high levels in energy and mining, and very low in industries aimed at the domestic market. In January, the sectors with the highest capacity utilization were concentrated in oil refining (86.8%), basic metal industries (67.6%), and chemical substances and products (64.8%). Also at relatively high levels were paper and cardboard (61.7%) and food and beverages (60.2%). In contrast, the most lagging sectors included textiles (23.7%), the automotive industry (24%), and metalworking (31.4%). The most significant year-on-year decline was observed precisely in metalworking, affected by lower production of agricultural machinery and home appliances. Capacity utilization stood at 24%, well below the 34.8% of January 2025, in line with a 30.4% drop in vehicle production. Among the few positive notes, basic metal industries showed an improvement compared to the previous year, driven by a 17.2% increase in crude steel production. According to the manufacturing production index, agricultural machinery production fell 32.1% year-on-year, while home appliances fell 35.8%. The automotive industry also recorded a significant decline. Buenos Aires, March 13 (NA) – The use of installed capacity in the manufacturing sector continues to plummet.
