Industrial activity in Argentina experienced a 7.4% decrease in August, marking a decline compared to the previous month. This data comes from the report presented by the Argentine Industrial Union (UIA), revealing a 0.9% setback compared to July. This sector has seen fifteen consecutive months of year-on-year decline and a 12.1% reduction so far this year.
Despite this negative trend, the preliminary figures for September show a deceleration in year-on-year reduction, as well as an increase in the month-on-month comparison. In this sense, less pronounced year-on-year reductions were identified in cement dispatches and electricity consumption from Large Industrial Users, largely due to improvements in the agro-industrial sector. There is also an increase in the liquidation of foreign currency and exports to Brazil, while the registration of agricultural machinery continues to decline.
The industrial environment continues to face significant challenges, characterized by unfair competition from the importation of finished goods and job losses in the sector. From a national competitiveness perspective, the UIA warns about the accumulated liabilities that negatively impact the country's value chains. According to the organization, Argentina ranks among the least competitive in the region due to various asymmetries requiring corrections, such as deficits in infrastructure, energy, connectivity, logistics, tax pressure, and other factors.
Despite these challenges, imports from Brazil and the automotive sector showed double-digit increases, while the decline in agricultural machinery registrations intensified. The UIA emphasizes the importance of addressing these issues to strengthen the industrial sector and improve Argentina's economic competitiveness.
