In September the industry collapsed: it fell 11.5%

November 7, 2018 - By Jacqueline McKee

In September there was a real collapse of the industry: it fell 11.5% in relation to the same month of 2017. There were setbacks for the fifth consecutive month in almost all sectors. And we have to go back to July 2002, with -12.2%, to find such a pronounced monthly fall. Meanwhile, for the fourth consecutive month, construction fell 4.2 year-on-year, according to the Indec.

With these numbers, which reflect the impact of the devaluation, the rise in the interest rate, the decrease in domestic consumption and the acceleration of inflation, in the first 9 months the industry accumulates a fall of 2.1%. So in the last 6 years, the industry added 5 years with falls and a single year -2017 – with a slight recovery.

For its part, forward, the industrialists foresee that the sharp fall in domestic demand will continue, partially offset by more exports, a greater idle capacity due to the lower use of machinery and equipment and a decrease in staffing levels.

In the industry, in September in relation to the same month of 2017, INDEC indicates that the textile industry (-21.6%), rubber and plastic products (-20.4%), metalworking excluded the automotive industry decreased (-15.7%), the block of chemical substances and products (-4.7%), the refining of oil (-11%), the tobacco industry (-15.8%), the edition and printing ( 5.9%), the block of paper and cardboard (-8%), non-metallic mineral products (-3%) and the food industry (-3.2%). There were only increases in the basic metal industries (+ 2.7%).

In the cumulative of the first 9 months, synthetic and synthetic fibers (-30.6%), agrochemicals (-17.3%), tires (-13.3%), and textiles stand out with two digits. -12.5%) and milling of cereals (-10.5%). Crude steel (16.2%), automobiles (10.3%) and red meat (9.7%) stand out with a positive sign.

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