Argentina's small and medium-sized enterprises (SMEs) saw a 0.6% year-on-year drop in retail sales in March, accumulating a 3.6% decline in the first quarter of the year. This marks a continued downturn after several months of negative figures. According to a survey by the Argentine Confederation of Medium Enterprises (CAME), the start of the school year boosted spending on specific items, but the loss of purchasing power and rising operational costs negatively impacted overall sales volume. Businesses also demonstrated marked operational caution due to their dependence on bank financing and a low predisposition to invest. Looking ahead, the report revealed that 48% of respondents expect sales levels to remain stable, 39.7% anticipate an improvement, and 12.4% predict a further decline. Regarding investment, 59.1% of business owners deem the current climate unsuitable for new expenditures, in contrast to 13.1% who see it as an opportunity. The sector-by-sector analysis validated the contracting trend, with five of the seven surveyed sectors reporting negative results. The most significant declines were seen in perfumery (-9.8%), home goods, furniture, and textiles (-8.3%), and food and beverages (-0.9%).
