MercoPress. South Atlantic News Agency
Argentina’s industrial production in May slumped 5.1%, says Industrial Union
Slower demand from Brazil and imports restrictions have hit hard 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%.
Top Comments
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Read all commentsFear not the CFK economic genius will soon come up with an anti competitive short term solution that enables the numbers to look better for 6 months or so.
Jul 18th, 2012 - 08:52 am 0Maybe a law that insists all negative economic data must pass through a committee to verify it's veracity. Then just delay appointing members, agreeing a schedules etc.
#1 Or maybe she will continue to be the best leader to see Argentina through difficult global economic times with pro-people policies, ratter than exacerbating the problem with cuts
Jul 18th, 2012 - 10:24 am 0Looks like you're going to be very dissapointed BK and very very soon.
Jul 18th, 2012 - 11:35 am 0Commenting for this story is now closed.
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