The head of the Argentine Industrial Union, José Ignacio de Mendiguren, admitted that it's clear that the activity level has dropped, and warned that the construction-related sectors delay the new projects.
Regarding the economy, De Mendiguren admitted that there are external factors that have an impact on it, but assured that there could be better tools to face this situation.
The head of the UIA also referred to the currency exchange controls and to the situation triggered by these restrictions.
He considered that the controls in the exchange market that have paralyzed the purchase of dollars did not directly affect the industry. Nevertheless, he warned that it is risky if the ones that work in economics base their thoughts in the 'blue' dollar.
De Mendiguren also backed the import controls, but stated that Argentina's level of activity is linked to the import of supplies and inputs.
“That there is a drop in the level of activity is quite clear. According to INDEC (national stats institute) the fall is greater than that of our own technical groups”, said De Mendiguren.
According to INDEC monthly estimates industrial production dropped in May 4.5% compared to the same period a year ago, thus expanding the slowdown tendency from April.
The fall is explained by a contraction in steel making and in auto production, the steepest since January 2010, when activity dropped 8.4%.