Industry declined by 14.8% and construction by 32.6% in May

According to data published by the National Institute of Statistics and Census (INDEC), industrial activity fell by a massive 14.8% in May. This is the twelfth consecutive monthly result with negative values. The last time the industry grew was in May 2023, when it posted a rebound of 1.1%. Since then, the data has always been seen “in the red”.

A striking fact is that fifteen of the sixteen divisions of the manufacturing industry have declined year-on-year. In order of its occurrence at the general level, the decrease was recorded in “basic metal industries”, 25.0%; “food and beverages”, 6.4%; “non-metallic mineral products”, 32.4%; “wood, paper, publishing and printing”, 18.4%; “machinery and equipment”, 22.0%; “furniture and mattresses”, and “other manufacturing industries”, 33.6%.

The items “rubber and plastic products” also declined, 25.8%; “substances and chemical products”, 8.3%; “other equipment, apparatus and machinery”, 28.1%; “motor vehicles, bodies, trailers and auto parts”, 19.7%; “textile products”, 21.4%; “metal products”, 10.3%; “clothing, leather and footwear”, 8.7%; “tobacco products”, 14.8%; and “other transport equipment”, 10.3%.

For its part, the division related to “oil refining, coke and nuclear fuel” saw an increase of 2.6%.

Among the commodities that registered a decline, there are some that stood out for their strong variations and their high impact on general activity. This was the case of basic metals industry, Which recorded an inter-annual decline of 25% in May. According to Indec, the main negative developments within the sector were observed in the steel industry and metal smelting, both activities affected by a decline in construction activity, the automotive industry, agricultural machinery and household appliance manufacturing.

These were also notable Non-metallic mineral productsMay saw a decline of 32.4% year-on-year. The main negative developments were related to the production of cement, clay and non-refractory ceramic products, and cement and gypsum articles.

for its part, Manufacture of machinery and equipment In May a decrease of 22.0% year-on-year was recorded. According to sector representatives, the low productive activity responds, on the one hand, to difficulties in the supply of imported components, as well as to a contraction in domestic demand.

Category Food & Beveragealthough it did not suffer such a significant decline in this context (-6.4%), it is one of those that has had the greatest impact on the manufacturing industry in general. This time, most of the decline was caused by lower production of soft drinks, water, soda, beer, diluted juices, cider and spirits, which represented a decrease of 25.2% year-on-year, which accumulated in the first five months. A decrease of 19.1% year-on-year. In May, the production sectors of beer, soda and water, soft drinks and spirits also showed a year-on-year decline. According to the companies consulted, the high level of stocks of finished products due to the contraction in internal demand prompted the reduction in production.

Construction activity is also not going well. In fact, the latest data published by Indec show a 32.6% drop in the fifth month of the year compared to May last year. The drop is notable, but it is in line with expectations, considering the national government’s decision to halt public works.

To measure construction activity, Indec surveyed the level of demand for the main materials used to complete any project. The results were striking. For example, asphalt sales decreased by 47.8%, while round iron sales decreased by 48.9% and granite and limestone mosaics fell by 47.2%. Sales of hollow bricks (-35.8%), plaster (-25.7%) and Portland cement (-27.2%) also declined.

In addition, the national organization monitors the number of registered jobs and the area authorized for new projects, although both items are a month late. In April, formal employment in the region fell by 16.8% and the area allocated for new works decreased by 12%.