Public works in Argentina have suffered a paralysis that has led to a 27.4% collapse in the sector, a level rarely seen before. However, the industry showed signs of recovery in December, with an 8.4% year-on-year increase after a year and a half of declines, and a 0.2% increase compared to the previous month.
Private reports indicate a partial improvement in industrial activity, although it is still below its potential levels. It is expected that the reactivation of credit and the scenario of disinflationary consolidation will drive the recovery. During 2024, 15 of the 16 manufacturing branches experienced declines, such as in construction materials (-24.3%), the machinery and equipment sector (-18.6%), steelmaking (-17.5%), the textile industry (-17.1%), and car production (-11.3%).
Construction has been one of the most affected sectors, bearing the brunt of the adjustment with job losses. Sector costs have increased by 22% above the average of the last five years, although a rebound in demand is observed. Both manufacturing activity and construction have been severely hit by the recession and adjustment during 2024, with declines reaching 30%.
According to INDEC data, the industry experienced a year-on-year drop of 9.4% last year, marking the worst performance since 2002. In particular, construction was the most affected sector. On the other hand, there has been a 58% increase in asphalt sales in December, as well as improvements in sales of construction paints (22.6%) and stable demand for ready-mixed concrete (0.1% variation).
