MercoPress. South Atlantic News Agency

Argentine industrial activity contracts 4.1% in August year-to-year

The auto industry in September was down 20.6% compared to the same month a year ago, the largest drop in twelve months

Industrial activity in Argentina dropped 4.1% in August compared to a year ago, completing a 0.8% contraction so far this year, according to a survey by the country's Industrial Union, UIA. However compared to last July industrial production was up 0.7%.

Among the worst performing activities are chemical and petrochemical production, textiles, food and beverage and metal-mechanics. While at the other end are basic metals, car industry and non metal minerals, but they also have been sliding gradually since last May.

However the car industry in September was down 20.6% compared to the same month a year ago, the largest drop in twelve months. Likewise the overall September industrial production is forecasted to have a contraction in the range of 5%.

Regarding industrial employment, it suffered a 0.35% fall in July, which represents 4.078 jobs. This is the eighth month running industrial employment has dropped totaling 27.925 jobs less than in July 2017.

On the positive side the UIA report indicates the improvement in exports. Manufacture exports in August expanded 11.3% and reached US$ 1.793bn, while farm overseas sales excluding oil seeds expanded 15.8% reaching US$ 782 million.

The good manufacturing export is attributed to the recovery of Brazil's industry which expanded 2.1% in August over the last twelve months. On the other side imports fell 0.3% during August compared to a year ago, totaling US$ 6.294bn.

UIA anticipated that industrial activity will continue to slide in the rest of the year, except some specific exports, which means 2018 will end with a manufacturing contraction in the range of 2% to 2.5%.