Argentina’s industrial production in May slumped 5.1%, says Industrial Union
Argentina's industrial production in May slumped 5.1% from a year earlier due to a sharp slowdown in the automotive, non-metal minerals and base metals sectors, manufacturer chamber UIA said in its monthly report Tuesday.
May's industrial production was down 4.2% on the year in seasonally-adjusted terms, said the Argentine Industrial Union.
That's in line with the 4.6% year-on-year drop in May's industrial production reported by the government. In seasonally-adjusted terms, May's manufacturing was down 4.5% on the year and 2.4% on the month, according to the national statistics agency, Indec.
Manufacturing has been hit hard by an economic slowdown in top trading partner Brazil, reduced growth at home and government restrictions on needed manufacturing imports.
Car makers have seen exports to Brazil plunge, and May's vehicle manufacturing fell 24.4% on the year, the UIA said.
Imports in May were down a sharp 5% on the year, due mainly to the contraction of sectors that rely heavily on imported goods, such as automobiles, metal works and car parts, the UIA said. Exports were down even more, falling 7% on the year, with manufactured goods bearing the brunt of the decline.
Economic growth in Argentina has stalled in recent months. In April the monthly economic activity indicator rose just 0.6% on the year and fell 1.6% on the month.
The Argentine government is betting on 4.1% expansion this year but private estimates range between 2% and 3%.