In November 2024, a new contraction in industrial employment was recorded, confirming an official trend after two months of slight recovery. The sector faces a challenging outlook, with a partial year-on-year recovery but a marked deterioration in recent activity. The Industrial Performance Monitor (MDI Index), which anticipates the evolution of manufacturing activity, stood at 42.2 in January, marking its tenth consecutive decline and confirming the sector's continuation in a contraction zone.
The report, based on a survey by the Argentine Industrial Union (UIA) involving more than 800 companies, indicates that the January result does not imply a strict contraction of activity due to the high seasonality of the month due to vacations and plant shutdowns. In year-on-year comparison, the MDI increased by 12.3 points compared to January 2024, when the industry was undergoing a severe recession due to fiscal and exchange adjustments. However, it fell by 6.8 points compared to October 2024, reflecting a deterioration in the recent trend.
Regarding key indicators, 42.3% of companies reported a decrease in production, while only 18.3% reported increases. Regarding sales, 44.8% registered declines, in contrast to the 22.2% that managed to increase them. Concerning employment, 11.5% of companies expanded their workforce, while 17.6% reduced it.
