General economic expectations have deteriorated again, with an increase in prospects rated as "bad" (+2 percentage points) and "very bad" (+5 percentage points). Regarding sales for the next quarter, 60% of business owners believe the situation will remain the same, while only 16% hold out hope for improvement. Additionally, 25% of companies chose not to replace vacancies generated by resignations. Pessimistic expectations for the short term. The outlook for the future shows no signs of relief. This situation was reflected by merchants who pointed to the lack of demand as the biggest operational obstacle. Faced with the evident lack of market, the CIAI emphasized that "the inability to pass on costs to prices worsens," specifying that "half of the companies could not pass on increases and 43% could only pass on less than half." As a direct consequence of low sales, the report showed that stocks began to accumulate again, reaching an "excessive" level in 50% of companies—the highest figure in a year and a half. The crisis also strongly moved to the payment chain and employment. Difficulties in meeting financial obligations affect 8 out of 10 companies, while occasional payment delays doubled in the last two-month period, affecting 60% of firms. At the same time, the report seen by the Argentine News Agency showed that the group of clothing companies with no significant payment delays plummeted from 40% to 21% in just two months. On the labor front, staff reductions intensified. Layoffs now represent 21% of the labor measures adopted by companies, meaning a 7 percentage point increase from the previous two-month period. Buenos Aires, March 22 (NA) – Clothing sales in Argentina fell by an average of 8.4% year-on-year during the first two months of the year, consolidating a negative trend that has affected almost all periods surveyed since 2024. The data comes from the latest report by the Argentine Chamber of the Clothing Industry (CIAI), which reflected that in the January-February bimonthly period, the lack of demand is consolidated as the main concern, affecting 8 out of 10 companies, while financial tension and layoffs in the sector grow. The survey details that 63% of companies suffered a decrease in their sales, while only 30% managed to increase them during the first two months of 2026.
