MercoPress. South Atlantic News Agency

Strong expansion of industrial activity and revenue

Industrial activity in Argentina increased 6,4% during June compared to a year ago accumulating a 7,2% expansion in the first half of the year according to the latest release from the Statistics and Census Office.

However compared to the previous month there was a slight 0,5% contraction.

"The strengthening of the domestic market, a competitive exchange rate and pro-ctive policies have created the conditions to advance in the re-industrialization of the country", said Secretary of Industry Miguel Peirano. "This will lead to the consolidation of industrial production with a strong impact in employment", added the minister who outlined that production increase is present in all areas, "including big companies and small enterprises".

Automobile manufacturing was the most dynamic with a 29,1% increase in the first six months of 2005, followed by the construction industry, 12,7%. Printing showed a 9% expansion, paper and cardboard 9,1%; aluminium 8%; plastic and rubber 8,2%; textiles 7,6% and the food industry 4,3%.

Sectors which contracted are crude refining 1,2% and tobacco 9,2%.

But all sectors compared to the previous month, May 2005, actually suffered a slight contraction.

Another positive half year index was the budget surplus which reached 1.800 million pesos in June and 11.58 million pesos in the first six months of 2005, equivalent to 80% of the 14.500 million pesos target for the whole twelve months.

Compared to a year ago expenditure increased 24%, basically because of debt payments, 1.039 million compared to 287 million in 2004. Similarly, transfers to provinces increased 15,2% and retributions to government employees 17%.