Industrial activity soars 9.3% in Argentina led by the auto production
Argentina's industrial activity in June rose 9.3% on the year led by automobile production, according to manufacturers association UIA (Argentine Industrial Union).
The expansion continues to show disparate rates of growth and relative concentration. The sectors with the greatest traction were automotive, machinery and basic metals, which together explained nearly 68% of total growth, UIA said in a statement Monday.
June's 12-month growth rate was slightly lower than the 9.6% observed the previous month. Industrial output dipped 0.1% from May in seasonally adjusted terms.
Production in the automotive industry, Argentina's largest manufacturing sector, expanded 23.8% on the year to about 80,000 vehicles.
In May, Brazil stopped granting non-automatic import licenses on a number of products imported from Argentina, including automobiles and auto parts that led to delays at the border of up to 60 days. Some progress has been made in easing the restrictions following a flurry of meetings between Argentine and Brazilian government officials.
According to sector sources, it is hoped that during the second half bilateral trade with Brazil reverses the minor setback that was observed [in June] in the level of foreign sales, UIA said.
Argentine industry is set to benefit from yet another year of brisk economic expansion and strong demand for its products abroad, especially in Brazil. The government has forecast 8.2% growth this year, down from 9.2% in 2010.