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Argentina April industrial production grows 8% over a year ago

Saturday, May 21st 2011 - 09:19 UTC
Full article 8 comments
Durable goods consumer spending spree in Argentina to beat inflation Durable goods consumer spending spree in Argentina to beat inflation

Argentina's industrial production rose a seasonally adjusted 8% on the year in April, led by an expansion in automobile, metals and chemical output. Manufacturing increased 0.5% in seasonally adjusted terms from March, the national statistics agency, Indec, reported Friday.

Argentina's factories are benefiting from a consumer spending spree at home and strong demand for cars and home appliances in neighboring Brazil.

The Central Bank of Argentina has said it expects the economy to grow more than 6.5% this year, thanks in large part to domestic consumption. Unemployment eased to 7.4% in the first quarter, its lowest level in about two decades, while consumer confidence approached an all-time high in March.

Inflation that most private-sector economists say is running above 20% is another reason why Argentines are keen to run out and spend their money on durable goods like cars, electronics and home appliances.

As for Brazil, South America's largest economy and Argentina’s main trade partner is expected to grow a respectable 4.5% this year, after expanding 7.5% in 2010.

Indec’s Friday reports annual gains last month in textiles of 2.2%, tobacco 2.3%, petrochemicals 4.3%, automobiles 21.8%, machinery 12.8%, nonmetallic minerals 11.2%, base metals 9.4%, plastic and rubber production 10.5%, and paper and cardboard 0.3%.

Food-processing activity increased 5.3% as higher output of edible oils, milled grains and dairy products offset a contraction in red meat.

Declines were noted in printing activity, 3.4%; and in oil refining, 4.9%.

Overall capacity utilization rose to 80.9% from 76.1% in March. The highest levels of capacity utilization were noted in basic metals, 90.3%; petrochemicals, 83.8%; refining, 83.7%; and nonmetallic minerals and paper/cartons, each at 82.7%.

Categories: Economy, Argentina.

Top Comments

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  • GeoffWard

    If industrial production grows at 8% and inflation is at 25%, does this mean that the man in the street is better off or worse off?

    May 21st, 2011 - 07:32 pm 0
  • I

    LOL kind of hard to make up lies and keep up trashing something or someone who doesn't deserve it, #1 you are another of the many british victims of mercopress bias coverage of Argentine issues, unfortunately for most UK and EU there is two worlds the real one in south America and the world made up in the web for british illegal aliens who will eventually come to see things as they are, and for what I heard a while ago Argentina is building homes for the homeless, including legal inmigrants.

    May 21st, 2011 - 08:12 pm 0
  • GeoffWard

    I'm not laughing, though I may be a victim of Mercopress's journalese.
    My question relates to the growth in the economy - Is the 8% after correction for inflation, or does it not take it into account?

    May 21st, 2011 - 09:18 pm 0
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