Construction in Argentina down 6% in March; industry demands price stability

Saturday, May 3rd 2014 - 06:06 UTC

Full article 45 comments

A majority of the industry believe construction activity will continue to decline in the second quarter

Argentina's National Statistics Bureau, Indec revealed that construction activity fell 6% in March compared with the same period in 2013. The Argentine government, as has happened with the poverty figures, at first was reluctant to release the index, but finally delivered the latest data.

With March this is the second month running of construction contraction: in February the industry index was down 5.2%. This means that in the first quarter of the year, construction activity in Argentina, according to official stats was down 2.6% compared to a year ago.

According to the March stats, activity was down in home construction, minus 6.4%, and minus 3.6% for 'other buildings'. Public works activity was up 3.5% but infrastructure works down 0.6%.

The Indec stats report also includes a poll on the industry's performance the next quarter: 4.3% anticipated an increase in activity while 21.7% said the contrary. Regarding companies involved in public works, 35.3% forecast a fall while those with a positive view totaled 26.5%.

As to the reasons, those involved with private sector construction argued the overall fall in economic activity was 25%; lack of credit, 20%; fall in private investment, 18.3% and price instability, 13,3%.

Likewise those involved in public works, argue the main motives are less government investment, 29.2%; a fall in economic activity, 22.2% and price instability, 19.4%.

Finally a third of the interviews, both involved in the private and public sectors, said that the most effective policies to prop construction would be those to stabilize prices, plus credit promotion.

Categories: Economy, Argentina.

Tags: Argentina, Argentina contruction, Argentine economy, Indec index.

Top Comments

Disclaimer & comment rules

LEPRecon
A downturn in construction is a very clear sign that the economy is tanking.

The Argentine governments political ideology can't ignore the rules of commerce, industry, economics and just plain common sense.

I wonder why it is so difficult for this Argentine government to understand why the world's economy is the way it is. It has evolved to it's current status because it is the only way it can work.

If there truly were a different and better way of doing things then that is what would be being used today.

Political ideology refuses to accept the truth and tries to enforce a flawed system onto the people. But this will always fail.

Look at the USSR. It collapsed because it's political ideology couldn't cope with market forces.

Look at Venezuela. It is currently imploding because it's political ideology cannot cope with market forces.

Look at Argentina. It is beginning to implode because it's political ideally cannot cope with market forces.
May 03rd, 2014 - 07:02 am 0
Liberato
Thanks Leprecon, i love your optimism and support to us.
May 03rd, 2014 - 05:34 pm 0
The_Truth_shall_B_Trolld
Market forces, capitalism has failed everywhere it's been tried.

It was MERCANTILISM that brought prosperity to a BROAD sector of the population, see:

The Venetian Republic
The Hanseatic League

Capitalism creates wealth but distributes it inefficiently, shutting down competitors by restricting credit at the first sign of decreased profits, and amassing all wealth into the top dog of the industry (creating a monopoly). Capitalism inevitably leads to cronyism and a Plutocracy, as we see in China, Brazil, Russia, and the United States, where the rich create laws to further the cycle of wealth flow to them.

Mercantilism distributes wealth based on efficiency, innovation, but also allows others to participate. Because it is efficient, countries that have applied mercantilism have been some of the most democratic, with the most citizen participation in history in making law (again see Hanseatic League and Venetian republic). They also, by fact of a good distribution of wealth, allowed arts and music to flourish, and both towns and cities were vibrant and prosperous with NO poverty quarters. In capitalist cities you have mega-wealth next to (or above) pockets of abject poverty and exclusion.
May 03rd, 2014 - 05:55 pm 0

Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!