Argentina's Industrial Production Declines in November

According to a report by the National Institute of Statistics and Censuses (INDEC), industrial production in Argentina contracted by 0.6% in November compared to October. The year-on-year variation was also negative at 4.7%, although the accumulated variation for 2025 stands at 6.6%, pending December's data. Among other indicators, the number of jobs showed a year-on-year increase of 3.5%, reaching 392,130 workers, while the surface area authorized by building permits grew by 4.1% year-on-year to a total of 1,601,008 square meters. Apparent consumption of construction inputs remained stable compared to the previous month, with notable increases of 33.2% in ceramic sanitary ware, 19.7% in ready-mix concrete, and 17.6% in asphalt. In contrast, purchases of hollow bricks fell by 1.3% and gypsum by 2.1%. Private construction companies were pessimistic about an improvement in the sector for the next three months, with 68.5% of those surveyed stating that the sector's reality will not change by February of this year. In contrast, decreases of 19.3% in hollow bricks, 17.8% in gypsum, and 15.0% in ceramic floors and coverings were observed. In the annual accumulated period, increases of 47% in asphalt, 31% in ceramic sanitary ware, and 22% in ready-mix concrete stand out. Year-on-year, a strong decline was also observed. INDEC reported this Thursday that the Industrial Production Index (IPI) contracted by 0.6% compared to October. Likewise, 18.5% estimate it will decrease and 13% estimate it will increase. Meanwhile, 54.1% of companies mainly dedicated to public works estimate that the activity level will not change, while 24.0% believe it will decrease and 21.9% believe it will increase. Thus, the institute's non-seasonally adjusted series recorded its worst data since June 2024. Meanwhile, construction plummeted by 4.1% seasonally adjusted in November and marked its worst record in over a year. Industry suffered its third consecutive monthly decline in November, so the production level hit a one-and-a-half-year low, despite greater calm in financial markets following the ruling party's electoral victory. The Synthetic Indicator of Construction Activity (ISAC) prepared by the National Institute of Statistics and Censuses (Indec) extended its decline following October's drop. This is the worst figure since October 2024, when the contraction was 5.1%.